Solgold Share Discussion Threads

[pob69] 06/3/2019 03:38

#ecuador day at PDAC $CGP presentation and short video (just picture and no commentary) which will interest $SOLG $SOLG.L #ecuador.

[pob69] 06/3/2019 02:07

Of interest to $SOLG $SOLG.L #ecuador $CGP.

During his Canadian agenda, the vice Minister of Mines, Fernando L. Benalcazar, spoke with Nick Maher, CEO of Minera Solgold and his senior team, on the opportunities for new investments in projects in Ecuador. #MineríaConResponsabilidad

[pob69] 06/3/2019 01:52

Of interest to $SOLG $SOLG.L #ecuador $CGP.

FORMER CORNERSTONE CAPITAL RESOURCES EXECUTIVE GLEN MCKAY ON FUTURE OF CASCABEL PROJECT
Mar 5, 2019 | Posted by: MiningFeeds.com

The battle for Cornerstone Capital Resources Inc. (TSXV-CGP, OTC-CTNXF) is heating up following a preliminary takeover bid from joint venture partner SolGold. However, Cornerstone is likely to reject the overture, based on its latest press release on the matter and on comments by Glen McKay, a co-founder and former president and CEO of the junior mining exploration company.

Cornerstone has a joint venture agreement with SolGold on the Cascabel project in Ecuador, which is believed to be one of the world’s largest gold-copper deposits. SolGold is the operator of the Cascabel project and owns a majority stake. Larger gold players are also involved, with both BHP Billiton and Newcrest Mining holding minority positions in SolGold.

In a February 8 press release, Cornerstone noted that SolGold had issued a press release of its own on January 31, announcing its intention to commence an offer to acquire all of the issued and outstanding common shares of Cornerstone in an all-stock transaction, providing 0.55 of a SolGold share for every one Cornerstone share tendered.

“As previously announced by Cornerstone, shareholders of the company that collectively own over 50% of the company's outstanding shares have notified Cornerstone that they will not support the terms announced by SolGold,” the Cornerstone release stated. “As a result, if SolGold proceeds to make a formal offer on these terms, the company believes that SolGold's offer would be incapable of being successfully completed.”

The Board of Directors of Cornerstone said it had assessed the SolGold proposal with its financial advisor and believes that the proposal significantly undervalues Cornerstone. The Cascabel Project is owned by SolGold's 85% owned Ecuador subsidiary Exploraciones Novomining S.A. (ENSA). The remaining 15% of ENSA is currently held by Cornerstone. In addition, Cornerstone owns approximately 9.2% of the outstanding shares of SolGold. In effect, Cornerstone has a combined direct and indirect 23% interest in the Cascabel concession.

Cornerstone said it was disappointed by SolGold's latest press release, stating that it contains “numerous inaccurate and misleading statements and baseless innuendo.” Still, Cornerstone said it remains open to constructively discussing with SolGold and other potential bidders any value enhancing transaction that would garner the support of Cornerstone's shareholders.

In an interview, Cornerstone co-founder and former chief executive Glen McKay called the SolGold preliminary offer a poor bid, or an offer so far below the current value that under most circumstances it will be rejected. McKay is a major shareholder and a special advisor to Cornerstone. “I know that we can identify 60% of shareholders who have been surveyed and unanimously we are going to reject the offer, if SolGold comes with it,” McKay said. “They may still come with an offer, but it will be a waste of their money to do so and will be really embarrassing for SolGold.” An additional factor is that SolGold is mostly an illiquid stock so that even if Cornerstone accepted the deal there would be little chance of current CGP shareholders being able to monetize their new shares of SolGold in the short term.

The price SolGold is offering is not based on the fair value of the Cascabel project, McKay said. In addition, he says there are a number of issues with the joint venture agreement between SolGold and Cornerstone that have not been fulfilled.

This may not be an issue in the future, if BHP Billiton or Newcrest or some other suitor comes in with an offer for both companies and consolidates them. But for now, McKay says SolGold is not in a position of strength and the deal as it stands is “not going to happen.”

Stressing that he can’t predict the future, McKay nonetheless believes that another bid for Cornerstone will take place, perhaps as soon as this year. Although BHP Billiton has signed a deal which rules out a takeover bid until November, Newcrest Mining is under no such restriction.

Newcrest has signed two major joint venture agreements with Cornerstone in the last couple of months, McKay notes, including an agreement on the Cana Brava project in Ecuador and the Miocene property in Chile.

McKay sees the two deals as an indication that Newcrest is positioning itself for a bid so that they are in a good place in terms of their relationship with Cornerstone. “If I had to make a bet, I would say that Newcrest is the front runner and it may be that they will do it as a partnership,” he says. “I think something will happen before the end of 2019. We’re hoping that another interested player comes in and starts a bidding war.”

With consolidation on the rise in the metals sector, a SolGold-Cornerstone merger perhaps makes sense, although SolGold may have to sweeten its offer to cement the deal. But Cornerstone’s initial negative response suggests even that won’t be enough. For now, interested observers will have to be content to wait for another missive from SolGold to see if the offer changes or is simply shelved.

Whatever the outcome, McKay believes that Cornerstone will spin off its other assets before a sale of its interest in Cascabel due to the potential of other properties that are under other JVs such as the Bramaderos project in Ecuador. Malcolm Norris, the CEO of Cornerstone partner (Sunstone) on the project was the CEO of SolGold in 2012 when Cornerstone completed a JV deal on Cascabel. Norris and Cornerstone VP Exploration Yvan Crepeau are due the credit for the discovery of Cascabel, McKay says. They are hoping to replicate that success on Bramaderos.

[alwaysevolving] 06/3/2019 01:37

I seriously doubt SOLG will still be independent in three years time let alone ten?

I feel NM is using such language to garner increased interest from potential bidders in the same way he talks of taking the company to production

Time will tell no doubt but I just don’t think we will have to wait anything like ten years for shareholders to realise full potential here. Just my opinion.

[mam fach] 05/3/2019 22:37

We are promised three score years & 10.
Unfortunately I am heading for it this year.
Can't wait 10 years to make my fortune.
So I will sell some of my shares @ 3 times current price -soon.

[dmitribollokov] 05/3/2019 20:46

Nothing goes up in a straight line...

[sogoesit] 05/3/2019 20:36

And how many ups and downs will there be in the years to come and will those here now be here in 10 years time to see their "20 times"?

[dmitribollokov] 05/3/2019 19:49

10-20 times the current price is defo possible here if everything works out. Just not this year!

[mam fach] 05/3/2019 19:25

Other people might call that trying to pump up share price.
But some of us know this is possible.
Trouble is no one believes us.

[lefrene] 05/3/2019 18:02

Ah yes the 'ten to twenty times current price' or words to that effect. A great many things beyond NM's gift, but I feel that patience here is the best approach. There's an awful lot of metal to be had, there's water, there's power, and infrastructure to get it to a port about 65 miles away.

[mam fach] 05/3/2019 17:44

Agree.It's been long wait for PEA.
Especially as NM dropped hints of excellent news months ago.

[mknight] 05/3/2019 17:05

5070481

Seems he is a retired Aussie who has a mining background so its possible one of his mates has heard something . Not long to wait to see if he or his friends were right .

I hope he is because we could really do with getting some rigs in at B+N just down the road to see if there really is a gold mine . If there is then that would put the shareprice where we want it .

[alwaysevolving] 05/3/2019 16:03

Well I hope SOMETHING happens soon. This six month range bound share price is getting properly boring now!

[lefrene] 05/3/2019 15:15

People can say anything on a public BB, and what they say is usually influenced by their own position. The only real thing you have is rns news flow and the daily price of the share, which today seems to doubt any news is imminent.

[5070481] 05/3/2019 15:02

I noticed this on LSE as well MK. Is WSO involved in the permitting at all? JUst wondering what his source was

[simon_carter] 05/3/2019 13:35

Another top up for me today, looking forward to the next few months news flow

[mknight] 05/3/2019 12:48

We really need the permits to come through ASAP once we can start drilling the other sites we should have news flow . Wso on the Lse site thinks they will come through Friday or Monday if true this should see us past 38p .

[dmitribollokov] 05/3/2019 08:21

The PEA has been end Q1 for since xmas. The end jan comment was in novemeber.

[saucepan] 05/3/2019 08:15

Sogoesit and zeusfuria: thanks. I myself have the patience to wait for the PEA, but was curious as to whether there had been a timetable slippage. The 'Slide 8' referred to, suggests not.

[pob69] 05/3/2019 08:10

Intersting that Brent Cook and Joe Mazumdar (if you don't know who these individuals are - you should...) are now looking at #ecuador opportunities from a previous "anti" position due to the majors being now involved there now at 9 mins with better government engagement. They are also saying that there are not many global copper plays around and that you should be looking at small explorers with large majors having shareholdings, as a couple of their investment rules. I would imagine $SOLG $SOLG.L Solgold and $CGP could fit the bill!

[zeusfurla] 05/3/2019 07:45

I took the 'next 2 months' to mean Feb/Mar (loosely worded article) and given the slides see no reason for it not to be by end March.

[sogoesit] 05/3/2019 05:13

In answer to PEA timing Slide/sheet 8 of the March 2019 Presentaion has the PEA scheduling bar end at the end of 1Q 2019.



There was a prognostication on this thread that it would be 28 February but I haven’t seen any confirmation from SOLG itself about any timing other than by end March.

[lefrene] 04/3/2019 19:48

When dealing with large corporations one is dealing with a lot of careerists who as a breed tend to be cautious lest they jeopardise their jobs and pensions. So a lot of nervous people have to be absolutely certain that buying Solg would be a good thing. Or at least that's how I see it, there can't be many people out there who can lay out $billions without having to be answerable to anyone.

The PEA will come, and one hopes it arrives at the most propitious time.

[mknight] 04/3/2019 14:30

Lefrene, if he released the PEA then the price would not be 37p providing the information is positive which we all feel and hope it will be .

Those that wish to buy us already have a great deal of information as to what the PEA might contain so waiting does not make any sense to me . Quote the opposite

[saucepan] 04/3/2019 13:58

Lefrene: thanks.