I lean strongly to what Cwamit and The Nugget say. But especially what Cwamit says about AVO.
Pala IMO is not the least bit interested in owning/operating a goldmine. They have already chosen AVO as their preferred vehicle in the Eastern Goldfields. They will make their Big money from AVO becoming a pretty decent size producer, not from a relatively small producer like IGR. Consolidation is the name of the game eventually. SLR will probably go at some point also. AVO can then use the economy of scale, maximise mill usage and grade blending etc. to achieve a large profit % increase.
I would be very surprised if AVO are not sitting on 4.99% holding through UBS, therefore disclosure not required. Another smart hedge fund or two with less than 5% each and a precision corporate maneuver unfolds. I'll give Pala an A+ for strategy and tactics. I believe they are very, very clever. Despite the fact I wish they would go away.
As everything unfolds, I am personally starting to believe that it is inevitable that Cwamit's scenario of a script bid to be the most likely outcome sometime in the future.
Hopefully there will be some more discoveries before that happens to boost eventual T/O price.
Just musings. If I were a prophet I could make a lot more profit. And at these prices it is tempting to bet a bit more.
And as another little side note, I think Pala were unhappy they weren't invited to the financing party instead of the banks. With AVO they make money on investment and financing.
IGR Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
