Solgold Share Discussion Threads

[goldrush] 25/9/2020 11:06

Lowtrawler

Then why not go further and take out CGP also....then they can dictate total direction to SOLG....and plan the way forward in total confidence of their position.....They would own 34% directly of SOLG and 15% of Apalla and Region Holding Company.... IMHO....

[goldrush] 25/9/2020 10:57

alwaysevolving

Why would BHP wait it out ?

Newcrest has been talking to CGP we presume.BHP we also presume would talk to Newcrest when out of purdah. BHP are not in the habit of leaving things to chance.....Too much is at stake and a 2 way split with Newcrest is most likely IMHO....perhaps with a NEW SOLG for the other concessions with the SOLG Team getting some of it....Newcrest has to do something as there have been reports, which I have posted previously, of the big boys wanting to take them over...

[lowtrawler] 25/9/2020 10:52

I don't expect BHP to launch a takeover bid straight from standstill. However, they may cement their position by upping their stake. One possibility is to buy out Newcrest. The advantage to BHP in going down that route is it effectively blocks SOLG as a takeover target for anyone else and gives them a platform for acquisition at a time that suits them.

If BHP go down that route, CGP are stuffed.

[alwaysevolving] 25/9/2020 10:35

I have a feeling BHP won’t be in a rush to do anything and will simply wait it out?

[lowtrawler] 25/9/2020 10:28

In my view, if CGP reject our bid and then either don't hold the requisitioned general meeting or fail to win the vote at that meeting, their share price will fall 70% and possibly more. That is because they are then depending on a successful SOLG bid taking place before DFS and build commences where the bidder also offers to buy CGP. That event is not under their control and may never happen.

CGP shareholders are expected to reject our bid and yet the maximum additional value they could expect from holding out is 40% (they end up owning 15% of Cascabel instead of 21% - the 6% difference is 40%) where if the uncontrollable takeover event never occurs, they lose 70% (their 15% stake in Cascabel).

The potential extra 40% they are holding out for could be dwarfed by a major find at Porvenir or Rio Amarillo giving them the missing 40% and possibly much more.

No rational investor in CGP would choose to reject the SOLG bid and yet that is what we expect to happen. Once they lose the requisitioned meeting, nobody will have any sympathy when they eventually handover Cascabel to SOLG for peanuts.

SOLG will be hoping for an early statement from BHP supporting the SOLG management team to either kick the requisitioned meeting into touch or make it a foregone conclusion.

[lowtrawler] 25/9/2020 09:36

We know 3 things are going to happen over the next 3 weeks.Next week, we will have an RNS adding in the missing technical details for our last reserve update.14 October, we will have the official CGP result of our bid.15 October, BHP leave standstill.At some stage in the next few weeks we will also have:PFSInitial drill results for La Hueca and PorvenirWe may also get the requisitioned general meeting.

[ifthecapfits] 25/9/2020 09:33

Be very interesting to see what they do and how soon.

[jackjackpaul] 25/9/2020 09:33

O/T Australian Gold PLAY #EEE drilling starting next week, NO debt, fully funded drill programme, tine market cap.. This has the potential to do what #GGP has done..

#EEE multibagger in the making imo

[lowtrawler] 25/9/2020 09:26

BHP come out of standstill on 15 October, not 19 October.

[goldrush] 25/9/2020 09:19

pob69 and GoodGrief

Thanks for your links to the CGP Kitco video which I just got round to viewing as I was travelling by car from Gibraltar to UK.

The pressure is being applied by CGP as we reach the 19th October release date for BHP.

Kitco is a great medium for them to get the news out....seems logical for something positive to happen....only 3 weeks to go on Monday for things to legally commence....

Good Luck to us All.

[lowtrawler] 25/9/2020 09:17

No problem, all the talk of fireworks and rollercoasters is welcome respite from lockdown.

[arcadian] 25/9/2020 09:01

Low

I thought I was thanking Pob but somehow your post intervened. Following you it sounds sarcastic which was not my intention. I agree with you , MK and many others that the next few weeks will be an exciting roller coaster.

[greenelf] 25/9/2020 08:21

I might even take my blanket off now.

[arcadian] 25/9/2020 08:20

That`s a comforting start to our day. Thank you.

[lowtrawler] 25/9/2020 08:14

What we're all agreed about is there will be lots of news surrounding SOLG over the next few weeks. It's going to create volatility, volume and attract new traders. Strap in for the ride, it's going to be bumpy.

[pob69] 25/9/2020 08:07

There's some useful macro copper material here though of specific intrest National Investor Chris Temple offers commentary again Solgold SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

Page 8-9 "...Yet the real fireworks likely still lie ahead, as a potential
jockeying for position over who will own how much of this premier Tier One
asset—and eventually develop it— looks set to ramp up this fall."

"...With a very accommodative government in Ecuador a net tail wind, this premier asset will in the near term be one of THE big new copper-gold developmentstage projects in the world."

[mknight] 25/9/2020 06:29

Christmas coming to solgold shareholders next week ?

starters . PFS

Afters . Porvenir and La Hueca

Christmas speech by NM on the 29th .

Dont be out .

[arcadian] 24/9/2020 20:16

sirmoor--peanuts

The Melbourne-based mining giant would have to spend up to A$22 million (about $15.5m) over 10 years to become Elliot’s majority owner.

[mirabeau] 24/9/2020 19:09

Valued at £1bn with no revenue: Greatland Gold’s incredible rise

Loss-making tech companies are routinely valued in the billions despite no hope of near-term profitability. But the mining industry really takes the cake on hopeful valuations. Companies without revenue, let alone a profit, can shoot up as investors try to time both a commodity and company’s high point.

Last week, Greatland Gold (GGP) hit an all-time high of 27p, taking its market capitalisation over £1bn. This is the same size as Highland Gold Mining (HGM), a 300,000 ounce (oz) a year producer with a forecast cash profit of $286m (£221m) this year, according to FactSet.

Massive ramps by pre-revenue mining prospects are not uncommon. See SolGold (SOLG) in 2016 or Bushveld Minerals (BMN) in 2018. Greatland Gold has blown these stories out of the water. Investors who liked the look of it in 2018 would have a return of more than 4,000 per cent.

Chief executive Gervaise Heddle told Investors Chronicle being an explorer was not easy.

“The modern mining industry really is an all-or-nothing industry, it is a scale industry, and you need to find deposits of significant scale to really make a success of it,” he said.

“We've been fortunate that we have found a significant copper-gold deposit, we're also very fortunate that that deposit happens to be only 45km away from a large gold processing plant, and fortunate to have a good partner in Newcrest [Mining].”

The company does not yet have an official estimate for how much gold and copper is under the ground at its Havieron prospect in Western Australia, although this is expected by the end of the year.

The company’s valuation has been rising steadily since last year, as drill results from its Havieron have been rolling in. Most explorers report grades over just a few metres, giving them higher gramme-per-tonne figures (testing is done in grammes or even microns while gold mine production is reported in ounces).



One 2018 hole at Havieron saw 275m at 4.77g/t gold and 0.61 per cent copper. Explorers hope to follow the mineralisation (where the metals are in the bed rock) with the drill rig, and by drilling dozens of holes, can work out the size and shape of the area they want to mine.

Alongside the drill results, a tie-up with Australian gold major Newcrest Mining (AU:NCM) in March last year gave it credibility and a financial backer, meaning Greatland has not had to keep going to shareholders for money during the development stages like other Aim resources companies.

There was consistent improvement in the share price up until 2020 but it was this year that the company’s share price exploded, going from under 2p at the end of 2019 to 12p at mid-year and then double again since then.

The former rising star SolGold offers an interesting comparison. It is now ensconced at the £500m-£600m level as it develops the Alpala deposit in Ecuador, which is more advanced than Havieron. SolGold also owns 85 per cent of Alpala, as opposed to the 30 or 25 per cent of Havieron Greatland will end up with once the current arrangement with Newcrest is finished, where it pays for exploration work in exchange for a stake in the project.

Alpala already has a mineral resource estimate – how much metal is in the ground – of 9.9m tonnes (t) copper and 21.7m ounces (oz) of gold. The mineral resource estimate for Havieron is coming by the end of the year.

The major difference for investors between SolGold and Greatland projects is that Greatland does not have to build a processing plant, giving it a far cheaper and faster route to production. Newcrest is funding development because its nearby Telfer mine is running out of gold, with a life of only a few more years. The idea is to truck ore 45km from Havieron to the Telfer plant.

The operation has a mining lease from the WA government, and construction of the major entry point to the mine (the decline) should soon begin, even before a feasibility study is done.

The flipside of that deal is that shareholders will end up with a smaller share of cash flow. Mr Heddle said his company was effectively watching on and getting ready to fund its share of development. “Newcrest is moving forwards quickly in terms of everything that needs to be done to actually turn this into a mine,” he said.

Even with the bulk of the financing to be covered by Newcrest, Greatland will still have to stump up its share. The shares doing so well could be an encouragement to raise the capital on the market, but Mr Heddle said debt financing was the aim.

The company is also exploring other prospects within the same licence area, which Newcrest has first right of refusal on if lightning strikes twice for Greatland.
IC View

Aim explorers often have a fight on their hands to even make it to the junior exchange, competing for investor, analyst and institutional attention and having to keep asking backers for cash. Greatland has so far offered an example of what happens when it goes right. That is not to say it will all be smooth-sailing from here. Adding ore to an existing processing plant presents challenges and financing and construction are often low points for miners.

[mirabeau] 24/9/2020 18:32

SolGold/BHP/NCMToday 18:29

Meanwhile in Ecuador, anticipation builds around a possible BHP or Newcrest bid for SolGold and Sunstone looks set to rise on back of Bramaderos project.

25th September 2020

Barry FitzGerald

'SolGold/BHP/NCM

Things are heating up around future ownership of the Cascabel project in Ecuador, the monster gold-copper deposit currently owned by the Brisbane-based and London-listed SolGold (85%) and Canada’s Cornerstone Capital (15% direct, 21.4% including its SolGold stake).

The Alpala deposit on the Cascabel concessions is rated as a Tier 1 deposit, with our own BHP and/or Newcrest positioned to take control by bidding bid for SolGold if they so decide, using their respective 13.6% stakes in SolGold as a starting point.

A standstill agreement prevents BHP from moving on SolGold until October 19 and ahead of that, SolGold has made a scrip-only takeover bid for Cornerstone – a project generation group that drilled the discovery hole in 2014.

Cornerstone has rejected the SolGold bid in no uncertain terms and at the same time has done a bit of a Mad Max by telling BHP that if it does want to move on SolGold, it should “talk to me” about its 21.4% stake.

In an interview with Kitco, Cornerstone CEO Brooke Macdonald pulled no punches, remembering Cornerstone, like BHP and Newcrest, is not happy SolGold sold off a 1% net smelter royalty on the project to Franco-Nevada for $US100m to keep its independence going.

“After October 19, BHP will be free to talk to Cornerstone about our 21.4 interest and join us in our efforts to change the SolGold board to create a board that will act in the best interests of all shareholders and stop breaching their agreements with Cornerstone,” Macdonald said.

That’s all interesting stuff. But it was Macdonald’s comments around SolGold’s “dead in the water” scrip takeover bid for Cornerstone that made for interesting reading for those prepared to look beyond the ASX.

Macdonald said the SolGold bid represented 1.4c per pound of copper equivalent versus the 7c a pound seen in other recent copper transactions.

“Cornerstone has a unique position of interest to any potential acquirer of Cascabel so we are not going to sell the company cheap,” he told Kitco.

He said that when SolGold trades in London at 27p (last sale was 25p), Cornerstone should be around $C6.50 (last sale was $C5.99).

“We are also trading below the $C8.67 that our top three shareholders paid when they swapped their SolGold shares for Cornerstone about three years ago. BHP’s price for their block of SolGold would imply a price of $C11 a share,” Macdonald said.

“And 7c a pound for precedent transactions would imply $C18 a share,” a smiling Macdonald said.

So while there could well be a bid coming for SolGold from either BHP and/or Newcrest, it looks as if the ball will start rolling with Cornerstone being in one of the bidder’s err….corner, and at a price well above its current levels.'

[sirmoori] 24/9/2020 16:47

https://www.mining.com/bhp-bets-on-copper-project-in-australias-northern-territory/

[mknight] 24/9/2020 16:36

UT 25P

Bet its over 26p tomorrow .

[greenelf] 24/9/2020 16:30

I am rubbing my hands with anticipation too. This could be a mega few weeks.

[mknight] 24/9/2020 15:52

So 4 more trading days until PFS if it comes out on time .. due 30th of September .

No doubt drilling news due soon as well.

Price imho will start going back up quickly
tomorrow .

I bet BHP are rubbing their hand together knowing that Alpala coud be theirs for 50/60p

[mknight] 24/9/2020 13:04

Pmount is here always a good time to buy.