Solgold Share Discussion Threads

[mknight] 19/10/2020 16:06

Looking at gold core samples on Google it would seem to me that photos 1 and 2 of the Rns seem to be loaded with gold .

[charlieeee] 19/10/2020 15:57

The other way of dealing re the tax problem is to leave Alpala in Solg and spin out the currently less valuable other subsidiaries.

Payment out on current holdings, with a reasonable premium, plus the same number of shares in the "newco" would probably be fair, particularly if "newco" was funded with the cash already raised by placement.

The real problem here for LTHs is that the exploration potential is undervalued and thus may be gifted to a successful predator. NM is clearly doing his best with the drilling and a riot of presentations, but there are some big copper hungry beasts out there, who do not take "no" for an answer.

[mknight] 19/10/2020 14:24

They might decide to change their mind as the market wants the assays which i can understand.

[lowtrawler] 19/10/2020 14:15

They have said they will publish the drill 1 assays together and so unlikely before the very end of this month.

[mknight] 19/10/2020 14:10

Its a small possibility Mirabeau . If you believe in the solgold team and buy today then you just might be getting in extremly cheap as once those assays come back the price should rocket .

[mirabeau] 19/10/2020 13:56

I wonder if we'll see the assays before SOLG do their presentation at this Red Cloud?

[mknight] 19/10/2020 13:33

Thanks pob69

So Thursday should be interesting .

Waiting on iceberg to give a detailed opinion on todays RNS . Certainly did a fantastic job on his last one .

[lowtrawler] 19/10/2020 13:32

swanvesta. As I say, I suspect that there will be ways around the tax issue but SOLG have thrown it out as an insurmountable problem. Probably to try and deflect possible bid activity. It will also be why they have never been explicit about what they mean.

[lefrene] 19/10/2020 13:32

Good to see copper and gold nudging up, the store cupboard is getting richer.

[swanvesta] 19/10/2020 13:28

"relatively miner costs" - I see what you did there.

Still seems to me they could transfer the ENSA holding for a nominal amount to another 100%-owned UK subsidiary. Failing that they could transfer the other assets in that way and leave Solgold with just it's 85% of ENSA. In fact, you'd have thought with a bit of foresight they'd have done all this from inception i.e. each Ecuador registered interest would have its own UK holding company.

[lowtrawler] 19/10/2020 13:21

You may get more joy searching for sovereign adjustment tax. It has been amended to become less onerous in recent years by allowing costs incurred by mining companies to be discounted. However, as SOLG have incurred relatively miner costs and no taxes, the tax will still represent a huge percentage. It actually forms part of the Ecuador constitution.

[pob69] 19/10/2020 13:21

Red Cloud Octoberfest with Solgold Nick Mather and Jason Ward (20 mins) presenting on 22/10 2pm BST SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP

[mirabeau] 19/10/2020 13:17

Lt -

Yes, ENSA owns the Cascabel licence and ENSA is Ecuador incorporated and registered. The sale of ENSA would attract some form of tax hit

SOLG is UK incorporated.

[swanvesta] 19/10/2020 13:11

Ouch. Would like to know the detail but google is not throwing up anything for me.

[lowtrawler] 19/10/2020 13:01

Mirabeau, yes, SOLG have said the onerous tax only applies for sale of Alpala.

[mirabeau] 19/10/2020 12:50

If SOLG equity that is listed in the UK and Canada is bought in its entirety ie the company then any tax charge rules applied by Ecuador is not relevant. Of course a sale of ENSA (Ecuador registered and therefore subject to tax applied by the Ecu State)

I think SOLG is London registered

[lowtrawler] 19/10/2020 12:39

swanvesta, SOLG have never been explicit about what they mean by the onerous tax charge. I suspect that they believe they will be caught by the 50% sovereign wealth tax and by the 5% currency outflow tax meaning only 45% of any sale proceeds would accrue to shareholders. There would be some adjustments to reduce the burden but it still reduces the potential proceeds significantly.

[swanvesta] 19/10/2020 12:31

mknight, yes the drilling will yield results SP-wise, but surely it will be a fraction of what could be achieved (and dilution avoided) from divesting Alpala? Eventually of course value will out but there's more than one path there, and NM has said he wants to minimize dilution. Which is why I don't see him diluting the major shareholders to avoid potential voting issues (in addition to the fact there'd have to be a vote on dilution anyway!?)

[rougepierre] 19/10/2020 12:04

LT...I doubt they could IPO Alpala without CGP's support...when you look at the fracas over the FNV funding and their still stated intention to seek an EGM, it seems unlikely...

AIMHO as usual...

[mknight] 19/10/2020 12:02

Swanvesta .

The Sp will react as the assays of each drill hole are annouced. If we were not drilling i would agree with you .

[swanvesta] 19/10/2020 11:58

LT, thanks for your response. My sense is that the further wait for BFS would be a period in the doldrums share price wise. And they will need to raise for the other prospects.

It also seems odd to me that local relations would be so badly broken, given that it's rare for a junior to go all the way to production (on this size project anyway), and that a sale now would make it much more likely they'll be able to do that for the other prospects. On the tax issue, do you have any detail? I doubt the government would be averse to that aspect BTW!

[lowtrawler] 19/10/2020 11:42

swanvesta, on publication of the PFS and outline funding, more options will be open to SOLG. They could spin it out as an IPO; they could carry on to production; they could seek a buyer willing to offer better value than either of these 2 options; they could take it to BFS and then review their options. The further along SOLG can take their projects, the more value will be released for shareholders.

There are 2 arguments against selling Alpala: Tax and reputation.

SOLG have indicated an onerous tax obligation for any disposal of Alpala. I suspect this is avoidable but, taken at face value, it may prevent disposal being a financially sound option.

NM has repeatedly made the point that SOLG need to build and retain trust of the central and local government. He believes that selling our first major discovery would be seen as a breach of trust that would then impact on our ability to operate elsewhere in Ecuador. I don't know how real this issue actually is. Again, taken at face value, we may need to deliver on Alpala to be allowed to deliver on Porvenir and our other locations.

[mirabeau] 19/10/2020 11:25

SP Angel update just out. From Pro-activve

Conclusion: After intersecting almost 900m of visual mineralisation in its first hole at Cacharposa Creek Solgold’s second hole has penetrated 258m of similar visual mineralisation so far with around another 380m of drilling to reach its planned target depth of 750m. Although assays are still awaited to confirm the grades, the initial success of the Porvenir exploration vindicates the Solgold exploration model which was honed during the discovery and evaluation of the Alpala deposit in northern Ecuador and gives Solgold a deep insight into the geological controls of mineralisation and into the effective exploration management of its Ecuadorean project portfolio. We look forward to the initial assay results from Porvenir.

*SP Angel act as financial advisor and broker to SolGold

[rougepierre] 19/10/2020 11:24

Haha very droll...

Nobody knows...I'm certain Nick wants to, but other, much bigger players may thwart that...

[swanvesta] 19/10/2020 11:16

But what is the sense in taking Alpala to production? It will do [little or] nothing for the SP, and in the meantime they will need to fundraise to explore the other prospects. The only argument I've heard is social responsibility to the Alpala community - but is it taken for granted that noone else can live up to the same standards?