RE: IMG/Avnel JVI don't think this JV with Avnel is good in the short term for Merrex, but it exemplifies IAMGold's commitment to making Mali a significant part of the company's future. Or, we can look at IMG's transition into Africa and how it now makes up 60% of the company's gold production and 6 out of IAMGold's 9 operations are now based out of Africa. This started developing a few years ago when they showed their African properties having the lowest operating costs when compared to their other projects.
Unfortunately, Merrex isn't getting lot's of attention ($) from IMG, but I don't think Siribaya was at the top of the IMG 2010 budget. Why would it be? They have many other plays they are working on the generate cashflow.
IAMGold is raising money as shown below ( from
https://www.iamgold.com/English/News/News-Releases/News-Release-Details/2010/IAMGOLD-Reports-Record-Third-Quarter-Production1123158/default.aspx )
In September 2010, the Company issued 403,064 additional flow-through shares at C$24.81 per share for gross proceeds of C$10.0 million to fund prescribed resource expenditures on the Westwood project. This is in addition to previously issued flow-through shares in March 2010, with 1,575,000 flow-through shares at C$20 per share for gross proceeds of C$31.5 million.
Production and Cash Cost(1)
Gold production for the third quarter of 2010 was a record 256,000 attributable ounces at an average cash cost(1) of $577 per ounce. IAMGOLD's attributable gold production in the third quarter of 2010 increased by 12,000 ounces or 5% compared to the third quarter of 2009.
2009 was a bit of a break-out time for Merrex because it established itself as a potential takeover target when drill results tripled the strike length and it proved (using the word 'prove' lightly) the deposit into a mineable resource. Threshold numbers were thrown around - 300, 000oz's - but it's all speculative. However, I don't think anyone is concerned about the Siribaya being developed into a mine. It's the mine construction timeline. True, IAMGold accelerated the drill program, but they haven't started on the bridge construction to start drilling across the river and the Avnel property has 2 rigs, while Siribaya only has one.
Until we see Siribaya higher up on IAMGold's priority list, we might not move much, but does anyone doubt that IAMGold wants to buy the Siribaya project? They have until May to finish their commitment to earn 50% but they will reach that sooner than May, so will the takeover activity start as early as, say... January? A couple months away from a lot of action, I think I can wait that long but obviously a few people can't. Essakane is another IMG African property and it got over $15 million from IMG this year and it is now producing and generating cashflow. Maybe next year will be MXI's turn to get a $15 million injection. Regardless, IMG is getting poised to spend money and MXI is right in the crosshairs.
Selling @ 0.41! seems crazy to those that have done their DD.