I am all for more transparency and better communications with this company.

Let me play devil's advocate. Our exploration company has also invested some of that cash in "marketable securities" and has an unrealized gain on that investment of almost 1 million dollars (off the top of my head), they did not tell us exactly what it was they had bought and how many shares in these securities either. I didn't hear alot of griping about that risk with "our money"

"That working capital, which was generated through various private placements and the exercise of outstanding warrants and option over the past three years, is held partly in cash and partly in short-term investments and some marketable securities, as shown on the balance sheet of the Company’s consolidated financial statements for each of those financial periods."

There has/had been the required disclosure though.

The 6 Million dollar loan has had disclosure as well and as noted in both my related posts today. They even preface the disclosure with the fact that they are primarily an exploration company.

"Apart from the Company’s main activities in exploration, the Company has continued to review a number of potential exploration acquisitions. Those are being reviewed and analysised with particular regard to the changing economic climate as that impacts the metals market. Apart from its primary activity in exploration, the Company agreed to loan up to $6,000,000 to a separate company at the approximate interest rate of 5%."

I am no expert in the applicable disclosure and transparency rules, but I would imagine that the assoicated director, who authors and signs off on the MD&A and the AIF and or the Financial statements is. As are the others who in support, work for the CEO and President. These are lawyers who know the rules inside and out and have been doing this for some time.

So Stones, here's what we as shareholders have to read over.

http://www.osc.gov.on.ca/documents/en/Securities-Category5/rule_20040402_51-102-cont-disc-ob.pdf

I would like to believe this company has and is following all compliance rules that must be followed as a public and reporting company. These are strict requirements.

I would like to know who is on the recieving end of that loan. Sure it's a "nice to know " for me. Would I not buy a share in ISM because they lent an unnamed "separate" company money or would I sell any shares I did have because of the loan that is repayable on demand? I don't think so...... Do I trust the judgement of those involved in lending this money, I would say yes. Has their past track record been good with the use of the company cash, I would say yes. Will we meet our 2010 exploration objectives going forward, it looks like another yes.

All IMHO

Item 1.9?

1.9 Ordinary Course of Business

In the end one can ask about what is and isn't material enough to disclose. What must be disclosed? Here are some guidelines for the MD&A. Transparency? Do they NEED to state who the loan is going to? The fact that it is repayable on demand is material and has been disclosed. (Obviously we had to find out that we bought a property called Desrosiers through a mandatory Filing but I too agree that could have been more forthright in the form of a news release.)

Is it business related? There are a lot of questions that come to mind. Will we ever know? Are we worried about risk? Proportionally it is a large % of our cash. What has been our record for managing our cash and investment strategy so far?

Anyhow enjoy the reading.

(e) Focus on Material Information