Solgold Share Discussion Threads

[jlondon] 17/10/2020 20:54

"It is harder and harder to get new giant COPPER mines into production in order to address the coming "SEVERE DEFICIT" as Goldman calls it. The new giant Copper Discoveries are coming only a few and FAR between, according to S & P." - 17.10.20



----

[mknight] 17/10/2020 17:44

Thanks pob69

He said waiting for the 2nd drill results which he expects soon . So might get another update next week if they report at 250m

He clearly is very excited about Porvenir .

First drill 16th of September first report 1st of October 500 plus meters 15 days.

Second drill 12th of October so should get to 500m plus 27th of October . So like for like drilling Tuesday the 27th Rns for 500m plus .

[pob69] 17/10/2020 15:57

Nick Mather bullish presentation at Diggers and Dealers SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

"Focused on whole country - not just 1 project - with rather dominant position. "

"Healthy MCap now but does not match the potential value of the project pipeline. Broker price targets as many multiples of current price."

"Compelting PFS - nearing completion. DFS - towards end of calender year 2021"

"6 rigs at Alpala"

"Made a new exciting massive discovery at Porvenir, endorses blueprint developed from Alpala."

"We think a great number of of these 14 will eventually turn into Tier 1 resources." "Porvenir so far and more to come" (in BOLD in the slide)

"Resource version of Shock and Awe"

"Worries about Ecuador are fading"

"You will see announcements in next couple of months concerning board and management"

"banker's dream - conditional financing term sheets underway for $3bn conditional on feasibility permitting and fiscal terms"

"Alpala once running will be 4% of GDP"

"Estimate Cornerstone will owe $52m after feasibility study"

Explicit in saying "Cornerstone will not be able to use its equity in ENSA as security"

"Hoping to come up with 5 or 6 projects we want to be drilling on."

The slides are not yet available but Slide 13 is fascinating; "Discovery adds the greatest value. Share price overlayed with news: check out the perceived share price increase with further discoveries.

"We will do more Porvenirs over time"

Interestsing that the priority project slide has a number now marked in yellow though not mentioned why! (Rio Amarillo, Porvenir, Celen, Sharug and Coangos). La Heuca is not so maybe not so positive there?

"Porvenir - one of our greatest moments and now anxiously awaiting results from 2nd drill" "easy to get excited with these drill cores"

"Rio Amarillo - sleeping giant"

"Celen very excited by this and getting drill permits for that"

"Sharug also very excited by this too and getting drill permits as well"

[pob69] 17/10/2020 08:31

Jason Ward's interesting Porphyry Wave Riders Virtual Conference presentation (though not the questions posed afterwards) SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

[mknight] 17/10/2020 08:11

Mirabeau

Nothing will happen anytime soon . Its just hot air by 2 CEO s that clearly hate each other . I am sure NM has already sorted out his defense plan for a possible change in the board should Cornerstone go down the route .

[mirabeau] 17/10/2020 07:48

The last thing we need is legal action by either party. That achieves nothing and freaks out the market

[mknight] 16/10/2020 23:12

Noccer

The truth is that it is not clear .

If it comes to the crunch it may well go to court . Would be nice if it was not Solgold going to court against them but the buyer of Alpala .

[noccer] 16/10/2020 23:00

Great research here - so does this mean CGP can't emulate SOLG and get an offtake (NSR) agreement with Franco-Nevada to cover all the costs they have looming - unless SOLG give it their blessing? Is an offtake agreement classed as 'debt funding' - excluse my ignorance?

[pecker1] 16/10/2020 21:47

It's very simple. Take two sheets of paper. Write a heading on one "Cornerstone achievements over last six years". Write on the other "Solgold achievements over the last six years".

I could not find a single thing to write on the first sheet. On the second, with a supposedly incompetent Board of Directors who are not fit to manage a public company or look after the interests of its shareholders, I wrote as follows:

While exploring the Cascabel site and finding and proving up a tier 1 copper gold deposit, the Board took advantage of its first mover status and, despite the tricky political environment, masterminded a regional exploration programme that resulted in the award of 72 licences in prospective areas throughout Ecuador, and started exploration in the carefully chosen most promising sites, all the while waiting patiently for the host authorities to grant the necessary permits and, despite the cost, initiated a wide ranging and genuine engagement with local communities to explain what they intended to do and how it would benefit the local population, and then started drilling and discovered another potential tier 1 copper gold deposit and very likely more of them, which no other exploration company has done in the history of mining.

I'm sure I might have missed out some achievements but it is not too bad a list for starters.

[charlieeee] 16/10/2020 21:45

It is not that simple.

SOLG clearly does have veto rights but "consent not to be unreasonably withheld" does
water it down.

In practical terms, however, it is quite unusual for 2 parties to separately fund their respective shares of a mine, using that mine as the collateral, particularly on such a hostile basis: that would certainly be a major consideration for any financier of a minority interest, since they have zero control over costs and therefore it is effectively asking the financier to write a blank cheque.

Cornerstone are obviously right in that they can sell the entire cornerstone company.

I suspect that is the plan and that they expect to receive a premium to help someone else on the path to a controlling interest.

It is likely that they have already canvassed Newcrest and BHP.

If Newcrest were the preferred party, then that could have already been progressed, so I am assuming either BHP won the Dutch auction or it is both?

Oddly, NM may have shot himself in the foot, as Porvenir makes the prize far more attractive: at least it has moved the base for any bid upward, which can only be a good thing.

As for Cornerstone, they are not playing the sensible game and may well come to grief.

[dozyduck] 16/10/2020 21:44

Cornerstone's assertions about 'ability to debt fund any share of its project development' is misleading in itself - in that while perhaps legally true, no bank would advance loans which are not covered immediately by cash flow to repay them. A shareholder agreement between Solg and Cornerstone (which I don't think needs to be published) would govern whether Cornerstone gets its share of cash immediately or not. And in any case a chunk of that cash will go to repay its past debt to Solg.

[swanvesta] 16/10/2020 21:30

Note SOLG have to be reasonable, so they can't simply deny CGP something because it's in their financial interest. I can't find the original earn-in agreement either but there is a reference to it in section 7.1 "Other than as permitted by clause 15.1 of the Earn-in Agreement..."

[pob69] 16/10/2020 21:05

How nice poster Smickster copying my last message without a reference elsewhere.

Poor show as it took me time to find the document and then type the statement out....

[lowtrawler] 16/10/2020 21:03

It's very simple. SOLG are honest and straightforward. CGP spin and pretend. CGP cannot raise debt finance without agreement from SOLG.

[pob69] 16/10/2020 20:43

This is beyond my pay-grade but for reference... SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

“Earn-in Agreement” means the Cascabel earn-in agreement between SolGold, Cornerstone, CESA and ENSA dated July 2012, as amended by a term sheet between SolGold, Cornerstone CESA and ENSA dated February 24, 2014."

Section 7.2 of the Term Sheet Agreement 24 Feb 2014 (available on SEDAR) though sadly not the original 2012 document, offers detail on "Transfer of Interests";

From the date of this Agreement until the effective date of terminaton of this Agreement, Cornerstone and ENSA may only Assign an interest (whether legal or beneficial) in the whole or part of the Tenement or any Interest of ENSA, or any interest of Cornerstone in ENSA or CESA or issue any securities (or rights of be issued securities) in ENSA or CESA (except the issuance of additional shares of CESA to Cornerstone in respect of the capitalisation of shareholder loans of Cornerstone or for Cornerstone to provide equity funding to CESA) if;

(a) SOLG approves the proposed assigneee or recipient (such approval not to be unreasinably withheld); and

(b) the third party assignee or recipient has entered into an assignment and assumption agreement pursuant to which such assignee or recipient is bound by the obligations of this agreement and Earn-in Agreement as amended by this Agreement

[swanvesta] 16/10/2020 19:33

I don't understand how the text of the earn-in agreement allows for such a disparity of views.

BTW Sorry for completely misunderstanding CGP's statements on their carry - earlier posts deleted.

[mknight] 16/10/2020 19:13

My thoughts

1) Cornerstone may be bought out by another company so the fighting may not be worth anything .

2) Lawyers will sort it out if it does .

All in all alot of hotair from both sides .

We need to keep our focus on our regionals and leave it to CITI and our lawyers to sort out Cornerstone .

[pob69] 16/10/2020 18:58

What I find a little curious is that they have not previously deployed this statement (in CAPS) in their offer rejection messaging (as far as I can establish)....

Pursuant to the Cascabel Earn-in Agreement, (1) no party may grant security over or otherwise encumber its participating interest, EXCEPT TO THE EXTENT NECESSARY TO SECURE FINANCING OF ITS PROPORTIONATE SHARE OF PROJECT DEVELOPMENT; and (2) no one has a right of first refusal (ROFR) over a sale or change of control of Cornerstone, the listed company in Canada.

[mirabeau] 16/10/2020 18:42

Just seen it. Nasty, nasty, very nasty

[pob69] 16/10/2020 18:38

Gloves off though no EGM call yt

SolGold states in its October 16 news release “Cornerstone may not use its interest in ENSA directly or indirectly to secure debt funding without SolGold’s consent and SolGold holds a pre-emptive right to approve or disapprove of any dealings of Cornerstone in its direct or indirect interest in ENSA.”

This is false and misleading. Pursuant to the Cascabel Earn-in Agreement, (1) no party may grant security over or otherwise encumber its participating interest, except to the extent necessary to secure financing of its proportionate share of project development; and (2) no one has a right of first refusal (ROFR) over a sale or change of control of Cornerstone, the listed company in Canada.

Greg Chamandy, Chairman of Cornerstone’s Board of Directors and a holder of over 10% of the outstanding Cornerstone common shares, said:

“Following the embarrassing hostile attempt by SolGold, that was 100% certain to fail even before it was formally launched, it is not a surprise that the SolGold Board continues to repeat false and misleading statements in an attempt to hide their incompetence. SolGold’s suspect corporate governance, self-dealing practises and waste of significant resources simply confirm that the SolGold Board is incapable of managing the affairs of SolGold for the benefit of all shareholders in a prudent and transparent manner. Cornerstone will provide an update on our intention to requisition a general meeting of shareholders of SolGold in due course.”