gold, page-17

LS,

Nice fit, but I doubt the numbers would stack up for AVO:

IGR

~420m shares (fully diluted)

AVO buy at a 30% premium to todays price, 65c*420m = $273m

EV: $273m - $25m (cash) - $15m (plant, camp, land, etc...)
EV = $233m

AVO would only want the higher grade oz in the Randalls area, which currently equate to 980k oz, add in an extra 270k oz at SC...takes Randalls to 1.25m oz.

AVO could spin-out Aldiss area for $33m, EV then = $200m

EV/oz for Avoca after the above = $160 per oz.

Would AVO be interested at $160 per oz? probably not. I'd say the figure needs to be close to ~$125.

IGR + AVO would be a very good company with great cash costs and +300 oz production per year. I would be a holder especially with the green fields opportunities IGR are creating. AVO could fund IGR into production and would allow for a very good exploration budget, plenty of upside without excessive debt and shareholder dilution.

Just a thought, maybe too expensive, but the the benefits would be there for the long run.