Solgold Share Discussion Threads

[pmount] 07/6/2020 20:36

Took longer than I expected but shorts in average profit and ckear easy profit from here down.surprised you cant see it

[dozyduck] 07/6/2020 19:01

LT - Although didn't our Ino say it would ? Talk about muddy waters from a wunch of bankers.

[lowtrawler] 07/6/2020 17:42

Rp, the 15m has to be repaid on completion of the FNV deal and the FNV money can't be used anywhere but Cascabel. That is why they had to arrange financing pronto.

[rougepierre] 07/6/2020 17:12

The thought struck me this weekend...

One possible reason for the urgency of a fund raise, given they have $15m in the bank with up to $135m arriving from early July onwards, is that NM/Ingo have got wind of a bid being prepared...methinks Newcrest protests too much...but BHP have said nothing...

Furthermore there may be a clause in the Franco Nevada deal which suspends the further tranche if a bid is forthcoming...

And several have speculated on the possibility of a Barrick stake emerging...

Then there is DGR's recent fundraising...be interesting to see if NM has taken a stake of the placing as a Director, or if there are Holdings announcements re any of his other vehicles...

So...given that the shares could well be suspended if a firm bid was made, it would be smart for Nick to raise £31 million pronto because a bid won't stop any drilling...

So in terms of getting full value, if he can substantially increase the prospective value through assays in Blanca, Porvenir, Hueca and Rio Amarillo, he bolsters his bid defence or at worst accelerates the final takeout price...

Furthermore, with CGP selling out rapidly, any further significant discoveries would have zip benefit for CGP, while the value of Alpala to all intents stays put...

Just a thought and AIMHO as usual....

[anglia] 07/6/2020 16:36

I participated in the recent fundraising via Primary Bid.
Reading the disclaimers above -Can you not sell the shares before 10th October?

[lowtrawler] 07/6/2020 14:19

We new that they lacked funds to develop the other sites and they have been using the FNV bridging loan to get around this pending more permanent funding. The good news is that the equity issue has provided the funding and so that aspect of uncertainty has been removed. They can also incur costs arranging the full Cascabel funding.

The bad news is that they seem to have created a division with their 2 main shareholders (3 if you include Cornerstone) and they have raised equity funding at what we believe is an undervalued share price.

If the funding leads to a major site discovery, rivalling Cascabel, it will all be forgiven and forgotten. They have kept the equity raise at a modest level - probably enough to explore 2 sites - and so dilution has been minimised. In my view, the funding is both reasonable and proportionate.

As an explorer without any current income stream, we must expect further funding rounds as we move forward. These will include those related to Cascabel. However, we will also need to raise funding for exploration of more sites. If we have genuinely created a rift with our 2 largest shareholders, future funding will be that much harder.

I posted previously about how a mezzanine financing arrangement might work. This type of arrangement is likely to be pricey and take time to negotiate. However, it is still a possible route for future funding rounds. We have started to accept that there will be more equity issues, that SOLG need to raise huge amounts of Capital, not purely for Cascabel, and that we badly need to add more discoveries if we are to achieve a decent return. These are our harsh realities and it really shouldn't have come as a shock to anyone.

[robert heenan] 07/6/2020 14:03

What do you think will occur tomorrow regarding RNS?

Funds have been raised and proceed with next step within.....


Has to be a positive RNS

[goodgrief] 07/6/2020 13:18

Wish NM had a better 'speaking voice'... it's hard to stay away during his presentations!

[seball] 07/6/2020 13:11

Link below to NM Interview. Shows true potential is not reflected in current share price

[dozyduck] 07/6/2020 08:46

Interesting that phrase "chaotic funding" - so much for Citi and Ingo !

[goldrush] 06/6/2020 22:46

NM has some real issues as per The Financial Review.

One of his other problems is the Share Options. Most of the Options are at 60p. There are 67 million (20 million of them at 40p) that expire in July and August this year and I am sure he is wanting to get to that period and issue new ones at 22p or whatever after the Annual Results are announced. The remaining 90 million which includes employees and locals could be included, are unlikely to see much of any payout if a takeover of 65p/70p occurs. So much for him looking after his employees !!

He needs to get lucky with the drill bit pronto.

Newcrest could well be dusting off their CGP offer. The FNV deal has a big window and can easily be nullified ....both Newcrest and BHP must be having a look.

[goldrush] 06/6/2020 22:00

From The Financial Review afr.com

BHP, Newcrest bypass SolGold fundraising
Peter KerResources reporter
Jun 5, 2020 – 2.10pm


The rift between the management of SolGold and its two biggest shareholders, BHP and Newcrest, has widened after the copper junior's latest fundraising attempt prompted Newcrest to consider removing its representative from the SolGold board.

BHP and Newcrest collectively own close to 30 per cent of SolGold, but neither will participate in a surprise $US20 million ($28.8 million) fundraising announced by SolGold on Friday morning.

The raising comes less than a month after SolGold, which has no sustainable source of revenue, disappointed BHP and Newcrest by signing up to an eight month loan with interest rates of 12 per cent.
BHP and Newcrest have publicly urged SolGold directors to raise funds via equity, arguing that approach is in the best interests of existing shareholders.

The big miners have argued equity is a cheaper source fo funds for a company that is developing a long-dated and expensive mining project in a frontier jurisdiction, than debt or offtake deals.

SolGold appeared to have met those calls with Friday's opportunity to buy more shares at a discount of about 10 per cent to the closing price of SolGold's London shares on Thursday.

But neither big miner will participate amid concerns over SolGold's chaotic approach to financing.
“Newcrest will not be participating in the raising. We are disappointed with the approach that Solgold management has taken in respect to financing the company,'' said a Newcrest spokesman in a statement.
Friday's raising came with extensive legal footnotes, appendixes and disclaimers, which made clear that only a certain number of investors would be invited to participate.

Australian residents face legal restrictions if they want to participate, and participants cannot trade the new shares prior to October 10.

BHP will be liberated from a pre-existing standstill agreement that prevents it from buying more SolGold shares within a week of that October date.

Newcrest's block caving expert Craig Jones has served as the company's representative on the SolGold board, amid expectations that SolGold's flagship Alpala deposit will be a block cave if it is ever turned into a mine.

Newcrest indicated on Friday it may relieve Mr Jones of the fiduciary and legal responsibilities that come with being a director of SolGold.
''We are considering our position with respect to our representation on the Solgold board,” said a Newcrest spokesman.

The fact BHP and Newcrest will not participate despite publicly urging SolGold to raise funds via equity highlights the gulf that now exists between management of the copper developer and companies that control almost 30 per cent of its register.

That combined stake will almost certainly shrink through dilution in the wake of Friday's fundraising, which SolGold said created an opportunity to'' broaden the Company’s shareholder base through the introduction of new investors''.

[phattrader1] 06/6/2020 21:50

£27m plus another possible £4m on Monday so in total £31m. Should be enough to make another major discovery and get £1/share by October 🤞

[lowtrawler] 06/6/2020 21:48

It's worse than that. They need money beyond the 150m in order to negotiate and arrange Cascabel funding. The money that remains is available for drilling. I think only enough for 2 sites. One needs to be a winner.,.

[dozyduck] 06/6/2020 21:38

As I kept saying. NM was in a bind. He still is to some extent because, as others are pointing out, £20m (or so) won't buy much drilling. But better to make a start with a small raise in hope the shares will be higher for the next one.

[lefrene] 06/6/2020 21:21

But surely if there was some news that would lift the price, then NM would have played that card before passing the hat around again? Either that or behind he scenes vehicles were waiting to load up, before something good was released?

[phattrader1] 06/6/2020 20:14

Games were being played on Friday all day. The price dropped to 21.45-21.5p for the whole day.

What was going on? Volume was huge - they don’t include any new shares in the volume so some big news will appear soon - only NM knows what the hell’s about to happen.

I am predicting a low ball 40p offer from Newcrest.

[dozyduck] 06/6/2020 16:58

lefrene - speed couldn't have been of THAT essence ! Most pi's wouldn't have seen the Primary Bid offer until well into the tiny four hour 'window' for taking it up, If then. They could easily have extended the offer over the weekend. Either the co is desperate for the money (which they won't get for a few weeks anyway) or it was a blatant way to 'appear' to support pi's while knowing it wouldn't. Have to agree NM and Co have proved to be more and more devious during this episode.

[mknight] 06/6/2020 16:47

Yes Arcadian NM is a liar of the first degree.However if he has the Rio Amarillo permit the holders will forgive him again.

He has more or less lost the company so now he is going for broke with the drill bit one last chance to give it a proper value .

Copper getting to or above 330 will help the shareholders get a decent price .

Interesting few weeks ahead .

[arcadian] 06/6/2020 16:01

lef

For me the speed and manner of the offering confirmed my irrelevance in this venture
but then again I`m only here for the money. However now they have the money and the permits let`s hope that we have traction in both drilling and discovery which will I assume please all of us ( perhaps not DD) and add value to our holdings as we ride on NM`s coat tails and forgive him for the way he got us there.

[lefrene] 06/6/2020 14:45

Arcadian, I believe speed was of the essence, the share price has been trashed over endless delays and uncertainties, plus of course being economical with the truth about funding exploration. The thing is getting closer to something actually happening, but patience has worn very thin.

[mam fach] 06/6/2020 14:28

It will be more interesting to see what opening price is Monday.
Yesterdays trading makes no sense- is someone building a stake ?
Something is going on- NM always said he'd take it to production.
Looks more like we are putting up for sale sign.

[arcadian] 06/6/2020 12:21

Rouge -who bought the offering?

Despite the lip service to existing private investors, the speed and manner of the offering made me doubt the sincerity of the offering which to my mind was done in a manner to serve other parties and even exclude private investors in favour of other interests. It will indeed be interesting to see whether NM`s interest has increased albeit via this unexpected and less publicised route.

[mknight] 06/6/2020 11:08

FSAmakes sense .

I expect the Rio Amarrillo permit has been promised to be signed off in the coming days . He now has the money to put 10 rigs straight in and drill like mad before BHP are free to make a bid .

An annoucement along these lines wouuld put the share price alot higher .

I am still not in and might miss the start of the party but want to run with the banks for a bit longer .