Solgold Share Discussion Threads

[tosh123] 14/10/2020 14:58

pob,
great find and fantastic read.

[mknight] 14/10/2020 14:58

Thanks pob69 ..well explained article

[lowtrawler] 14/10/2020 14:56

Superb find pob

[pob69] 14/10/2020 14:46

A further new blog post, Solgold SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

[mknight] 14/10/2020 14:45

They planned it with 3 rigs not 9.

Porvenir. Amarillo y la hueca .

Reread Mirabeaus last post .

[lowtrawler] 14/10/2020 14:42

Mk, no, they said they were funded to end of 2021 with planned regional exploration spend of 27m to end of this year. They have sufficient for MRE.

[mknight] 14/10/2020 14:34

Lowtrawler

They do not have sufficiant to reach Mre1 they have 27m probably a less now and they will have 9 rigs drilling soon.

La Hueca 1 blanca 1 amarillo 1 and porvenir 6

I agree the higher the Sp the better it would be to raise money but they dont want to leave it too late as they will get screwed like last time .

Its always better to raise money when others think you dont need it .

[greenelf] 14/10/2020 14:28

With you on that LowTrawler.

[lowtrawler] 14/10/2020 14:23

Mk, once drill results for Rio are available and we have a few more drill holes in Porvenir, together with the PFS, we will be knocking on 60p. These events are weeks away. Why raise £38m now for 100m shares when you could raise £60m in a few weeks?In reality, they have sufficient funding to reach MRE. At that point, they could IPO Porvenir with a market cap of around $500m, maybe more, retain 25% and still have $375m of funding for everything else.

[mknight] 14/10/2020 13:55

Mirabeau

Thanks for that sums it up very well the need for more cash which if taken early could be sorted now even at 38p 100 million shares should see us well into 2021 . IF the PFS is in the next week or
So and the price moves higher better still.

Will Citi see an advantage to extend the offer period
For the purchase of Cornerstone .

[mirabeau] 14/10/2020 13:40

JC AT MI Today 13:39

John’s Mining Journal: The game’s afoot at Solgold

By Master Investor 14 October 2020

5 mins. to read

Veteran mining analyst John Cornford reviews some of the more interesting plays in the junior mining sector…

It certainly is not over yet for Solgold (LON:SOLG). Only the first shots have been fired in what is increasingly turning into a simmering pot (not exactly a ‘battle’ yet) where Solgold’s future is being stirred up – although it might take a bit longer, with a few more unexpected twists, than some observers expect.

Of the ammunition I expected Solgold to deploy, its first shot – initial drilling at Porvenir – the first three of twelve other promising prospects in the Ecuadorian Andes – looks like being spectacularly successful. Its first drill has intersected ‘visual copper mineralisation’ over 600m of a 750m planned depth, and has led Solgold to speculate that it has a “a large copper porphyry”, possibly bigger than Alpala and at shallower depth.

Porphyrys, although not necessarily high grade, are usually large enough to make them attractive to majors needing long life mines especially if they are at shallow depth. But in this case the initial grades – although not yet assayed – and their extent, look large as well.

So promising does Solgold think Porvenir to be, that it is hastily expanding its initial 8,000m drill programme to 50,000 metres, increasing to six drills as Covid restrictions allow, with at least one more by the end of October. And that will be in addition to restarting drilling at Blanca, only five miles from Alpala, where initial drilling encountered gold-bearing veins.

Also starting is an 8,000-metre initial drilling programme at Rio Amarillo, some 25 miles from Alpala. This has two ‘large-scale’ porphyry targets and has always been one of Solgold’s highest priorities – CEO Nick Mather stating his confidence that its ‘Tier one project at Alpala will be followed by Rio Amarillo’.

However, the fast expansion of these programmes might bring its own problem and perhaps open the way to one of the new twists, because to derive useful indications of their resources they will be expensive. For comparison, Solgold planned to drill 120,000 metres at Alpala in 2018 alone with 12 rigs – after 70,500 metres was drilled in 2017 at a cost of initially $1,100/m which reduced to $500/m as drilling progressed.

So, whereas only recently Solgold was reassuring investors that – following its c. $40 million fund raise (at 21.5p) in June, and the $100m advanced by Franco Nevada to complete the Alpala Feasibility study – it had sufficient funds to last until end-2021, that might come into question. In its latest management report only a month ago but before announcing its expanded programme, Solgold said it was planning to have spent only $27m on regional exploration in the year to end-June next year.

So, as ever in early stage mining, and barring any other developments, 2021 will see a race for these forthcoming drill results to keep the shares ahead of fundraising fears.

As for other developments, they could be many. For a start, as I write Cornerstone’s shares at $6 Canadian dollars with a 1.71 C$/£ exchange rate are well below the value of Solgold’s bid – due for acceptance by Oct 14th – indicating that Cornerstone’s management will persuade shareholders to reject it. That can only be because they have some dastardly plan to foil Solgold’s attempt to unblock its hold on 15% of Alpala, and perhaps to call the EGM it has threatened to do in order to oust Solgold’s present management. Alternatively, the market is expecting Cornerstone to sell itself more dearly to someone wanting those Alpala and Solgold holdings.

Other developments mooted are of some sort of concerted bid for Solgold by BHP once free of the lock on its doing so after October 15th.

I don’t have any clearer crystal ball than anyone else, so all I can say is keep watching – although it might be for longer than investors expect.

end

[wapping67] 14/10/2020 13:30

NM has been very vocal on the question of dilution for shareholders and has spoken out against further equity fund raises, only in the last week or so. Other financial alternatives are preferred along with off take agreements and streaming/ royalty deals. Any equity raise so soon would seriously dent his reputation.

[lefrene] 14/10/2020 13:17

It's no secret that Solg will need money to pursue it's aims, so it will have to sell something at some point, but what and for how much? By now the world is getting hungrier for copper and gold, and Solg is lining up the stocks on the pantry shelves.
6 months could make a big difference here. Lets see what BHP does.

[oli12] 14/10/2020 13:01

Let’s see. The Primary Bid Offer route of raising funds was IMO not suitable given SOLG’s ambitions. Hopefully any future raising of funds will be conducted in a more appropriate manner.

[lowtrawler] 14/10/2020 12:52

I reckon we could probably get Porvenir, Rio, Blanca and La Hueca to MRE on existing funds. At that stage, we should probably be looking at doing an IPO for one or more of them. That would provide funding for the others.

[lowtrawler] 14/10/2020 12:48

We raised a little over GBP30m earlier this year for regional exploration. This was considered enough for around 18 months. With the expansion of drilling at Porvenir and the same likely needed at Rio, we will probably need to raise funds early next year.

[mknight] 14/10/2020 12:35

Bogotatrader.

Anything is possible , obviously many know what is going on but unfortunatly we dont .

Anyone think NM might want more rigs drilling at Porvenir than 6 ?

[bogotatrader] 14/10/2020 12:32

Another RNS due before Canadian Markets open?

[mknight] 14/10/2020 12:32

Lefrene , lowtrawler is right all the monies from FN are for Alpala .

[lowtrawler] 14/10/2020 12:31

LF, no, all of the $150m can only be used on Alpala.

[mknight] 14/10/2020 12:28

Greenelf

We shall see but probably

1. To raise monies for the massive drilling we will be doing in the next 6 months .

2. To ensure others dont have enough votes to take out the board .

It will all come clear soon i guess .

Something is afoot as todays trading is not right and nor was yesterdays finish .

[lefrene] 14/10/2020 12:26

LT, but presumably some of the current $100 million can have other uses? Thus the $50 is a reserve if needed. Certainly no need to start talking about another cash raising.

[dozyduck] 14/10/2020 12:21

Newcrest starts trading on TSX today.

This is from a CGP chat board !
1) CGP shareholders may get NCM shares in partial payment as a "reward" for taking the very large risk of leading a board takeover of SolGold. We would retain a stub.

2) NCM is now FULLY in the face of the Canadian mining community. Will The Northern Miner please take notice?

3) At Very little expense, a share swap (exchanging CGP's VERY VALUABLE interest in SolGold /Alpala for NCM shares) Newcrest raises its iliquidity on TSX for possible inclusion in various indices, ETFs', etc. Newcrest will finally be trading wher it belongs most.

[mam fach] 14/10/2020 12:21

Strange. Don't know why price isn't much higher than this.

[greenelf] 14/10/2020 12:20

Why would you do a placing before the PFS is released ? Don't agree, just normal trading at the moment.