Solgold Share Discussion Threads

[rougepierre] 04/9/2020 09:30

Please ramp elsewhere...

[bspgamer] 04/9/2020 08:15

ogramme at Eclipse ProjectSource: UK Regulatory (RNS & others)TIDMEEERNS Number : 0059YEmpire Metals Limited04 September 2020Empire Metals Limited / AIM: EEE / Sector: Natural Resources4 September 2020Empire Metals Limited ('Empire' or the 'Company')Commencement of Work Programme at Eclipse Gold ProjectEmpire Metals Limited, the AIM-quoted resource exploration and development company, is pleased to announce that it has commenced field work at the high-grade Eclipse gold mining licence, located 55km north-east of Kalgoorlie, Western Australia ('Eclipse' or the 'Project').Overview:-- Phased work programme commenced at Eclipse, initially with systematic soil sampling and geochemistry-- 490 samples planned over the north-eastern and south-western areas of the licence, testing the areas adjacent to existing geochemistry results -- Soils / geochemistry results expected by end September -- Designed to test potential mineralisation at two additional targets north-west of Eclipse, the Houdini and Easy prospects -- Soil sampling represents the first phase of the work programme to include: -- Ground magnetic survey and sub audio magnetic survey -- Structural geological interpretation and mapping -- Reverse circulation drilling Mike Struthers, CEO, said: "We're very pleased to have started our fieldwork at Eclipse. Historical production records from the Project were well preserved, and together with recent geophysics and drilling we already have robust understanding of the gold mineralisation and the potential for significant high-grade gold resource development. With this in mind, we have high expectations for the results over the coming weeks and months during our option period and look forward to providing further updates in due course."

[bogotatrader] 03/9/2020 22:41

Mirabeau - Thank you for the Cornerstone research notes

[rougepierre] 03/9/2020 22:12

A perfect storm brewing...?



Soaring demand in China...

LME stocks down to just one day's supply...

Backwardation in copper price...set to soar to $8,000...

Fantastic timing for the SOLG PFS and any prospective bids...

[mknight] 03/9/2020 16:12

Lowtrawler

Cornerstone up another 6.5% ..

Over the offer price now ... Best to keep watching . If a higher offer is on the way we should see something by next week as its being leaked .if its just market speculation the price will stay as it is or ease back imho .

I would think Newcrest might be interested in picking it up by thats just my opinion .

[mknight] 03/9/2020 12:18

Lowtrawler .

All that has happened up to yesterday another 10% up today/tomorrow and we shall see.

[lowtrawler] 03/9/2020 10:21

Mk, usually the share price of a bid target rises to match the bid price. That's all that has happened with CGP. It could either indicate they are looking to accept the bid or expect a higher offer to be made. It is silent on prospects for a SOLG bidder appearing.

[mknight] 03/9/2020 10:13

If cornestone Sp keeps rising on volume then i feel its a pretty good bet that a deal will be done just before the 15th of Ocober or just after .

[lowtrawler] 03/9/2020 09:42

It looks to me as though CGP will reject the bid, fail to remove the SOLG board and so be entirely reliant on a SOLG /CGP bid materialising. If no bid arises, they are essentially worthless. That's quite a gamble.

[lowtrawler] 03/9/2020 09:30

Mk, nobody is going to take out CGP unless bidding for SOLG at the same time.If SOLG can win CGP, they will be able to announce long term financing much quicker than they otherwise would. However, if CGP refuse, SOLG will be able to pick them up for pennies in 2 years time.CGP only have 3 escape routes:1. Accept the bid.2. Replace the SOLG board.3. Gamble on a third party bidding for both SOLG and CGP.

[lowtrawler] 03/9/2020 09:18

Mb, the times were just rehashing the broker note from yesterday.

[mknight] 03/9/2020 09:06

So i guess the question is what kind of an price increase would we see if someone actually bought out Cornerstone .

No moving the share price over 26p at the moment .

Level 2 update

200k on offer at 26.20 seems cheap and a good amount .. will anyone snap it up ?

[mirabeau] 03/9/2020 05:58

SOLG mentioned in today's TimesToday 05:58

but can't get access as it's subs -

--

European Securities and Markets Authority correction warning ...

www.thetimes.co.uk › article

6 hours ago - 'Solgold is developing the Alpala deposit in northern Ecuador, which it reckons holds 9.9 million tonnes of copper, 21.7 million ounces of gold and 92.2 million ...'

-

Can anyone get access and see what the whole reference is about?

[swanvesta] 02/9/2020 21:39

Also, I'm pretty new to this so can anyone explain how $100m from FNV for 1% NSR is such a bad deal? On the face of it, it values Cascabel cashflow at $10bn which compares favourably with NPV, even if sunk costs are non-deductible.

[mknight] 02/9/2020 20:41

Seems to be working they are up to 4.99
Nearly 15% today .

Lets hope we can follow tomorrow .

[swanvesta] 02/9/2020 20:22

So I take it Cornerstone value themselves on special situation prices for Solgold, but consider a share swap at regular prices to be 'hostile'? In other words they want Solgold's takeover premium twice? Isn't there some danger they will be left to fund their share of capex, or face being reduced to a 1% royalty?

[mirabeau] 02/9/2020 18:50

Dear Fellow Investor,

It’s rare to find a mining investment opportunity where the potential for a big payoff is both obvious and imminent

At this very moment, however, there’s a special situation developing for Cornerstone Capital Resources (CGP.V; CTNXF.OTC) that promises both.

Simply put, within just a few weeks one of the world’s largest copper-gold projects could go on the auction block…and Cornerstone Capital’s shareholders could be in line for one of the quickest and richest windfalls in recent mining history.

4, 3, 2, 1…Lift-Off!

Here’s the story: By focusing on the mineral riches of Ecuador during a period when foreign investment in the country was out of favor, Cornerstone was able to amass a sizeable land position.

Then, along with joint venture partner SolGold, the company discovered and outlined a world-class copper-gold deposit on its Cascabel project.

As the deposit’s massive scale became obvious, majors BHP and Newcrest placed markers on the project by investing in SolGold, in which Cornerstone itself holds a 7.6% stake (to go with its 15% carried interest in Cascabel).

Now this is where it gets interesting….

What gives this story urgency is that BHP’s unique and unusual “standstill221; agreement with SolGold expires on Oct. 19, 2020.

The standstill prevents BHP from acquiring any shares in Cornerstone without SolGold’s consent unless a third party makes a move to acquire control of Cornerstone prior to Oct. 19, which would allow BHP to bid.

A separate standstill also expiring Oct. 19 prevents BHP from acquiring additional shares of SolGold or colluding with anyone to acquire control of SolGold.

After that date, BHP will be free to make a move on Cascabel…which would potentially result in a takeout of Cornerstone at a much higher share price than it’s trading for today.

A Truly World-Class Copper-Gold Resource

Why would BHP, the world’s largest mining group, make a play for Cascabel?

Because, in a world where Tier 1 copper-gold projects have become vanishingly rare, this project’s Alpala deposit stands out for its sheer scale.

In a recent story by S&P Global Market Intelligence, BHP Group CEO Mike Henry indicated that BHP would look to exploration and early-stage partnering to find its own new resources in places like Canada, Mexico, and Ecuador.

This sounds a lot like the position BHP has taken in SolGold and Cascabel.

A recent resource estimate on Alpala shows it containing a measured and indicated resource of 9.9 million tonnes of copper, 21.7 million ounces of gold and 92.2 million ounces of silver.

It contains another 1.3 million tonnes of copper, 1.9 million ounces of gold and 10.6 million ounces of silver in the inferred category.

According to a 2019 PEA on the deposit, that translates into a mine with a 55-year life …and the ability to produce an average of 207,000 tonnes of copper, 438,000 ounces of gold and 1.4 million ounces of silver annually in its first 25 years.

This project is truly massive — and massively profitable.


With an after-tax NPV, discounted at 8%, of $4.3 billion and an IRR of 25.9%, this project is obviously on the radar of the world’s major mining companies.

And with an initial capex of $2.7 billion, Alpala will require a major’s access to capital to put it into production.

A Hostile Takeover Bid Highlights The Potential

Of course, that hasn’t stopped SolGold from giving it a try.

The Australian company owns 85% of Cascabel and, right now, is calling the shots on how the project advances.

And, after a working relationship that had been very amicable, in early 2019 SolGold made the first of what would be two hostile bids for Cornerstone.

Cornerstone’s investors promptly rejected this first bid as inadequate.

Then, in June of this year, SolGold made another hostile bid for Cornerstone, essentially for the same price as its first offer (even though gold prices are on a tear and copper is making a strong rebound from its mid-March lows).

The deal values Cornerstone at C$3.78 a share. In rejecting this second offer, the company argues that its 21.4% interest in the project argues for a much higher price.

In a recent rebuttal to SolGold’s offer, Cornerstone made the following points:

• SolGold’s offer is 56% less than the C$8.60 share acquisition price of Cornerstone’s top three shareholders

• BHP’s 13.6% interest in SolGold, acquired in 2018 and 2019, implies a C$11 price for Cornerstone

• Newcrest’s 13.6% interest in SolGold, acquired by block purchase in December 2018, implies a C$13 price for Cornerstone

• Precedent transactions for projects of Cascabel’s scale have averaged $0.07/lb. copper-equivalent, which would imply a C$18 valuation for Cornerstone

Note that those valuations range from two to well over four times Cornerstone’s current share price!

Given this, it’s easy to see why Cornerstone’s major investors again flatly rejected SolGold’s latest offer, which expires on Oct. 14, 2020.

The Investment Window Is Closing Fast

That date isn’t coincidental, as it occurs five days before Oct. 19, 2020, when BHP’s “standstill221; agreement on its SolGold stake ends.

At that point, the major will be free to work with Newcrest and other investors on a deal to acquire Cascabel.

And the clock is ticking on the project: the Ecuadorian Mining Law requires a feasibility study on the project be produced by 2022.

So, if BHP wants to get their team on the ground to generate their own study in time, they’ll want to move quickly once its SolGold standstill agreement ends.

And considering the rarity of an asset of this size and profitability, whatever offer BHP makes for Cascabel is likely to be in that range of much higher valuations that Cornerstone has laid out.

But your window of opportunity here is closing fast.

As we approach Oct. 19, Cornerstone’s share price is likely to begin rising in anticipation of action on BHP’s part.

If you want to maximize your potential gains on this special situation, now is the time to do so.


END

[mirabeau] 02/9/2020 18:48

2 Sept 2020



A Countdown To Lift-Off

Cornerstone Capital Resources (CGP.V; CTNXF.OTC) owns more than 20% of the largest copper-gold deposit in the world not controlled by a major.

But by mid-October, the world’s largest mining group could well make a move on the project and send Cornerstone’s market cap soaring in the process.

[pob69] 02/9/2020 18:31

Reassuring interview with Interview with René Ortiz, Ecuador’s Minister of Energy and Non-Renewable Resources of relevence to SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

"...Even during the depths of the crisis we never lost sight of our primary goal. We are turning Ecuador into a major exporter of copper, gold and silver. We know that we have great geological potential, strong legal security and the ability to adapt to new situations."

[lowtrawler] 02/9/2020 16:00

MK. What to expect is increased volatility and volume. FNV, PFS, CGP, BHP, Porvenir and other regional exploration can assure us of that.

[pob69] 02/9/2020 15:22

Jason Ward pre-recorded video at the Northern Miner Conference using a new Sept 2 presentation deck (not yet on website) DAY2 SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

He's happy to be handing over some non-exploration responsibilities to the mining engineering team!

Some interesting stuff like regional progress next to Solaris recent discovery Warintza and also progress with local communities in other locations previously unsupportive (I just missed where!)

Rio Amarillo drill permits granted "hopefully next month" in addition to the 3 current permits.

[mknight] 02/9/2020 14:19

Lowtrawler.

Not sure what i expect , i know we should be trading at 40p+ already and are stuck at 26p .

PFS is only 30 days away BHP 45 days away . Would not surprise me to see 60p or 25p .

Maybe only a bid will move the price .. we shall see . I see nestle paid 174% more than the share price yesterday to take out a Pharma company so maybe even at 30p we might get 80p ..

[lowtrawler] 02/9/2020 12:39

MK, as we've been discussing in recent days, the volume traded (both supply and demand) seems agnostic of the price between around 24p - 27p. It means that the MMs can set the price anywhere in that range without creating an unbalanced book. They increased the price this morning to guard against increased demand from the broker note. When it failed to materialise, they have brought the price back down.

The lack of volume and wide trading range indicates a very subdued market. I very much think it is the calm before the storm and people have assumed their positions already prior to what will be a wild few weeks.

[mknight] 02/9/2020 12:18

Lowtrawler

Supply and demand .

If enough people buy they will put the Sp up if not then they can play a little either way .

[lowtrawler] 02/9/2020 09:42

Interesting to see that volume remains low and the price has been moved up by the MMs to reflect the broker note rather than through actual trading. It suggests to me that the MMs can just as easily walk the price down again.