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Searchlight Innovations Inc T.SLX


Primary Symbol: V.SLX.P

Searchlight Innovations Inc. is a Canada-based capital pool company (CPC). The Company's principal business is the identification, evaluation and acquisition of assets or businesses with a view to potential acquisition or participation by completing a qualifying transaction. The Company has not commenced commercial operations. The Company neither engaged in any operations nor generated any revenues.


TSXV:SLX.P - Post by User

Comment by SilverInMyPantson Dec 23, 2010 1:18pm
398 Views
Post# 17889027

RE: Question...

RE: Question...Genco, which was the pre-merger incarnaton of the principal asset, suffered considerable ructions at the board level, which combined with a blockade at its mine which shut down production for a long time, wore down and drove away investment interest.

That's enough to put off most people, and it takes a decisive break with the past to convince people to dip their toes afresh, stellar asset or no stellar asset.

As it happens, the principal shareholder (a non-mining businessman) came in, squeezed out the old board, sorted out the blockade, expanded the resource, nailed a feasibility study, got things ship-shape, and finally, within the last few weeks, sealed the merger which brings a whole new set of experienced miners (Hecla and Silver Standard pedigree) on board to bring the asset back to maximum production.

In other words, the ink is still so wet on the merger docs that the market has not yet realised/priced in the fact that the final piece of the clean break jigsaw has now fallen into place bigtime, and that the new SLX.TO = the original stellar asset with a fresh set of (positive) circumstances and a fresh set of competent mining guys to till it.

I think it's the biggest bargain out of the pure silver plays out there. When it comes back into serious production, people are going to wake up and realise that the company's share price is an anachronism. In recent posts I have suggested that a listing on AIM could bring forward and intensify that process of looking at the venture anew and valuing the company afresh.

If you haven't already, have a read of this interview with the principal shareholder:

https://seekingalpha.com/instablog/503905-marco-g/97873-bonanza-aztec-silver-interview-with-with-genco-in-merger-with-silvermex-ggcrf-tsx-ggc


The most apt thing he says is that 2 + 2 in this situation is not going to come to 4, it's going to come to a whole lot more. To my mind, the synergy in this merger has unearthed a whole lot of latent value, and the question now is how that value is going to be recognised. Will it happen drip by drip? Will production and exploration news releases rouse the drowsy market? Will the rising silver price bring fresh eyes to the small portfolio of silver plays? Or, as I hope, might the company proactively seek to achieve an appropriately revalued stock price by taking SLX to London, where the comparable Arian Silver is doing three times the daily volume with a third of the inferred reserves and an almost identical market cap.
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