Solgold Share Discussion Threads

[jlondon] 13/11/2020 11:10

Solgold tweet, 33 mins ago:
"Logging, logging, logging. More videos to come from our core shed as drilling continues."


---
Willem Middlekoop:
"Jiangxi Copper Corporation [China*s largest copper producer] invests $5m, via Valuestone , in Solgold."
18 hrs ago
[Willem Middlekoop*s Commodity Fund]

My Comment:
The video of logging is thus the 2nd one. Per the Solgold RNS of yesterday, 12 Nov 2020 [Thur], the investment or buy-in of Solgold shares are to be used for Porvenir. Porvenir Hole 2 has now passed 1,000m, the deepest for Hole 1 was 900m. Target depth for Hole 2 is 1,500m. So, from NM*s LKND and the Solgold RNS, the co is now prioritising Porvenir.

J.L
Fri, 13 Nov 2020.

[zoros1] 13/11/2020 11:10

Mam fach - did you not see the 8% rise yesterday on the news??
I re-posted this yesterday after Pob69 mentioned it first, it seems to have gone over everyone's head maybe:

The June fundraisings confirmed that "....in addition to the Placing, Subscription and the Retail Offer, the Company remains in dialogue with a potential investor for an additional subscription of up to US$5 million at the Placing Price."

This was confirmed 8th June that "...certain institutional and private investors have irrevocably agreed to subscribe for a further 21,440,186 New Ordinary Shares at the Placing Price (the "Private Investor Shares")".

Well we now know who the potential investor is, don't we? ValueStone is the shop window for
1. Jiangxi Copper Corporation - one of the biggest copper smelters in the world.
2. CCB International Asset Management Ltd - A chinese Bank offering finance deals.

Expect to hear a lot more from the chinese.
Z

[arcadian] 13/11/2020 10:35

LOW

I was writing mine above while you were posting yours but having read yours I agree with you on the points you made..

[arcadian] 13/11/2020 10:28

They say that money talks but it`s not that clear what the message is.

Could be the Chinese and the "escrow" bit indicates further dialogue, diligence further funds etc.

The RNS did not state that the the injection had to be spent on POR but POR is the companiy`s priority. Once proved up being way down South it would be a convenient sale to the Chinese at some point leaving Alpala and RIO to be developed by the company in the North.

Alternatively since he is in the driving seat and is his own man it is more likely that the message is from NM to the mining fraternity although at this stage the message is a little obscure.

For me with a heads up from the book sale of one it was tempting to wait for the news and then add but I intend wait for further reassurance about drill 2 at POR and the assays.

[mam fach] 13/11/2020 10:16

Excellent summary.
Agree with every word.

[celeritas] 13/11/2020 10:15

On UK Admission of the Subscription Shares the Company's issued share capital will comprise 2,084,113,494

[lowtrawler] 13/11/2020 10:12

Thus far, I have stayed out of the discussion because the significance of the fund raise is more how it is perceived by the market than direct value to SOLG. Normally, placing 0.6% of the Company with a new institutional investor would be a shrug and move on piece of news. However, we can see from the higher trading volumes, slight price uptick and discussion on this forum that it is being treated more seriously.

The perception of the fund raise, in my view, is:

1. It provides a toe hold for further Chinese investment in SOLG.
2. It makes a competitive bid for SOLG from China more likely.
3. It reminds the market that SOLG is able to make share placements at a premium to the share price rather than at a discount.
4. It wakes up BHP / Newcrest or any other investors to the fact that SOLG represents an attractive investment to others and so if they aspire to own SOLG, they need to get moving.

The direct value to SOLG is that they now have sufficient funds to reach MRE for Porvenir while continuing regional exploration. If they make a new discovery at Rio, they will likely try to do another placement allowing Rio to reach MRE. It makes a public offering less likely prior to MRE.

If you have read the AGM documents, SOLG have the capability of placing up to 6% of shares in this way. They are seeking renewal of that authority at the AGM.

[mam fach] 13/11/2020 09:59

OH for the good old days when share price would shoot up on an RNS .
Pretty depressing here at the moments.

[mam fach] 13/11/2020 09:49

Another plus is that we own Porvenir outright.
Significance is not how much Chinese invested but that they have invested.
Unfortunately this hasn't done much for share price-YET

[dozyduck] 13/11/2020 09:31

He's linked it to Porvenir because its for POrvenir he badly needs funds. This is peanuts compared with the need, so is obviously just an investment by an investment fund. Not the slightest reason to suppose it implies further funding from the same source, or an eventual bid. What it does highlight is that NM will be raising funds in dribs and drabs. Maybe good. Maybe not.

[lefrene] 13/11/2020 09:18

Presumably Porvenir is in NM's opinion the shortest route to proving up serious amounts of metal. Does the company now have enough ammo to get one of these projects up to DFS, and thus saleable, to raise the $3 billion or so to develope the rest of the prospects.

[greenelf] 13/11/2020 09:12

The significance of a statutory hold period until March. Well, it's statutory. End message.

[rougepierre] 13/11/2020 08:53

First...let's get a sense of perspective...0.6% isn't going to stop any bid...

However I regard this purchase, though small, as incredibly bullish.

First, the ultimate owners are one of my serious candidates to either take over SOLG or at least acquire one of the mines...

I expect we can't rely on 'Chinese walls' in China, so no doubt a huge amount of informed intelligence and a certain amount of influence will have been passed down...

Next, this is just one of a number of prospective mining investments for a new fund. Fund managers like these don't invest out of benevolence, so they will either already know that there is a guaranteed minimum prife at which the holding will be taken out at if there is a bid (and that price would have to satisfy BHP & NCM as well, or...

They would expect to make a substantial profit on this investment, even if it is in the long run..

So I think this puts their current expectations at 65/100p minimum...

Finally, Porvenir has been specified...Valuestone wouldn't put a stipulation like that unless their masters had a specific interest in Porvenir, but this is an investment in SOLG, not one mine...so...

Nick has gratuitously linked the money to Porvenir...why?

To strongly reinforce the message that Porvenir is going to be so huge that it's worth raising new money, but meanwhile it 'releases' all the other money for the other drills and I suspect Rio is now the other priority...

So all in all VERY bullish and I will leave others to work out the significance of the escrow until March...

AIMOas usual...

[greenelf] 13/11/2020 08:26

Normal service resumes, can now dribble back to 31p.Investors only have memory capacity of about 4hrs.

[lefrene] 13/11/2020 08:23

Why sell when you now know the Chinese are taking an interest? A Pavlovian 'sell the news'?

[sirmoori] 13/11/2020 07:30

Mining Journal Article:

New Player Arrives on SolGold Register

Valuestone is a private equity fund established by China's Jiangxi Copper and CCB International Asset Management.

Valuestone has closed the first tranche of its $300 million fund and is targeting deals of $10-40 million.

The fund is targeting a wide range of commodities across advanced and operating assets owned by companies based in the US, Canada, UK and Australia.

SolGold will issue Valuestone 11.9 million shares at 42c each, accounting for about 0.6% of the company.

The shares will be escrowed until March 2021.

SolGold said the proceeds would be used to advance the 100%-owned Porvenir project in southern Ecuador.

The first 580m of the first hole at the Carcharposa target returned 570m at 0.69% copper equivalent, or 0.49% copper and 0.27 grams per tonne gold from 10m, using a cut-off grade of 0.2% copper equivalent.

Assays for the 580m to the end of the hole at 909.3m are pending.

Hole two is underway and has intersected 658m of visual chalcopyrite mineralisation from 15.5m depth.

SolGold has suggested Porvenir could be better than its flagship Alpala deposit at the Cascabel project in northern Ecuador.

Alpala contains 9.9 million tonnes of copper, 21.7 million ounces of gold and 92.2Moz of silver in the measured and indicated categories alone.

SolGold had US$115.7 million cash at September 30.

BHP and Newcrest each own about 13.6% of the company and have anti-dilution rights at 10%.

BHP's two-year standstill on acquiring further shares expired last month.

Neither of the two major shareholders were happy with SolGold's recently closed $100 million royalty financing agreement with Franco-Nevada Corporation.

Newcrest said this week it had no plans to sell its stake, despite the funding agreement transferring "unnecessary risks" to shareholders.

"We see great potential in what might be at Cascabel or elsewhere," Newcrest CEO Sandeep Biswas said.

"In terms of technical fundamentals, we still believe one day [Cascabel] will be a great mine but there's a way to go."

Shares in SolGold jumped 7.8% overnight to 33.85p, valuing the company at £701.4 million. The stock peaked at 43.9p last month on news of the Porvenir discovery.

[mknight] 13/11/2020 04:39

Zoros1

Thats not what the Newcrest CEO said a few days ago . All will come out before the 17th of December
NM has done exactly what i thought he would do he has diluted those that would try and take his thrown WOuld it surprise anyone to see more money being raised for future drilling before the 17th maybe Barrick will be given the chance to buy a few %

[zoros1] 12/11/2020 23:27

MK - after the latest of a series of BoD shuffles, hiring of NED's, musical chairs regarding who is on which panel and of course the demise and resignation of some.....I suspect all the hot air generated by CGP has now evaporated. Absolutely NIl / nada / zilch chance of CGP having a pop at the Solg board now.....
CGP's concerns have been deflected, the executive is literally bulletproof and Solg in this regard is untouchable.
CGP have now discharged their weapon in this duel............and missed. Solg will now take aim with theirs at their leisure and watch CGP fall by the wayside.
Z

[mknight] 12/11/2020 22:37

In a tight race could that 0.6% just made NM untouchable .

I am pretty sure they have done their numbers .

Will cornerstone try and get the Directors removed ?

I bet there will be some cracking news out before the Agm especially if there is a vote to get rid of the board .

[plentymorefish] 12/11/2020 20:58

Hence the name.....

[mam fach] 12/11/2020 20:35

No. Do not think one company will take over SOLG.
But who knows. Plans moving along nicely.
NM plotting .Always said playing cards close to his chest.
Noticed we seem to be moving more toward copper than gold.
Dare I say price can only move one way from here.
Tomorrow's opening price will be interesting.
One thing is certain more RNS's on the way.

[chavitravi2] 12/11/2020 19:58

Does anyone think this may coax an early bid out of BHP?

[zoros1] 12/11/2020 19:53

Don't forget, China already have a large 30 year holding in Ecuador by the name of Mirador. Pumping out copper concentrate. They know the rules.
Z

[pob69] 12/11/2020 19:09

Updated presentation deck with minor changes issued prior to todays news (shares on issue reduced by 1!) SOLG $SOLG $SOLG.L #porvenir #cascabel #ecuador $CGP h

[tibszol1] 12/11/2020 18:25

Can`t say I or any other shareholder should give a sh*t what BHP or Newcrest think, this is an opening shot and it`s serious game on!