Well, let me start by saying that I am very long on SIRG and I mean very long. This thought about SIRG is not something I hope happens but I am beginning to think that it could happen. In fairness to Rod Martin I sent him an email midday yesterday outlining this same thought for his comment. I sent it to the email address that Ballstreet provided us and it went through but as of now no response. I was hoping he would call me a nutcase, no such luck.
Anyway, I think that the way out for SIRG to get funding is by defaulting on the loan which is due in July and to give up 80% of the company to the lenders. The lenders would have no use for the mine and would sell the 80% ownership to a new entity, possibly the Monaco Group that Ballstreet discussed, they have the money to buy the 80% ownership from the lender and provide the necessary capital to start the mine. Sirg bought the remaning 20% of the mine last month to now own 100%, under a new arrangement 20% would now be owned by the current SIRG investors while the new entity would own 80%. Soon after that the current management and board would be hired to manage not only the 20% but the 80% owned by the new entity with I am sure appropiate compensation.
Obviously this is very high with little detail but in general this is what I am starting to think. Please, someone call me a nutcase...
