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Fox in the coup, sharks circling... if ever you were going to pitch a bid it would be now. NM said expect corporate action... and it's coming. What do SOLG have in defence of a BHP bid at 55p? And don't say diverse book please!!! I think we're about to see the end game unfold as it normally starts like this.... need finance.... but dilution not welcome and buyer sniffing around who can put smiles on shareholders faces albeit at lower than its worth. I can see 55p going through unless it's countered and a bid war could see it through to 100p. Digger and Miners conference next week.... wonder whether we'll hear some news after that?
Well done Berry Street Capital, I am sure many would now be delighted to get 40p and get this mess over with.
Bubble their is a huge difference in raising funds for exploring and production.
You should at least understand the difference.
Minimum dilution for production, but all the money raised for further exploration is all dilution.
Hence my position.
As an aside, exactly the same thing happened at BCN.
They made a terrible ****-up whilst trying to raise cash and failed miserably. I got wind of this and sold out (I'm not going to do the same here). The company was forced into having to accept money from Gangfen and that was the beginning of the end.
We are by no means the copper equivalent of BCN, but their story is a clear warning about "strategic investors" taken on-board when a company's in a desperate position.
I wonder if Ingo's departure is related to all of this? It certainly raises suspicions.
Right, come on CGP, start firing a few broadsides - it's time the gloves came off.
Put the for sale sign up!!!
BSC were the ones that wanted the fund raise done 'after' the PFS was issued and not before. Ironic now that after the PFS they are now saying that they think its been mis-handled??
Good to see them pushing for a strategic review and sale of the business as it implies end game nears and when that AGM nears in Dec.... it really will be game over for many SOLG board members. They've tried valiantly to escape the grip of BHP and others and best case scenario would be to kick off an auction process and let Barrick and Rio et al enter the ring. Could see the sp in the mid 30's if you get a media report saying shareholder revolt and sale of business likely. Load up the truck!
Statement re SolGold Plc
Berry Street Capital Management LLP has been an investor in SolGold Plc (“the Company”) since late 2020. We have subsequently added to our exposure through public market share purchases as well as through the Company’s 2021 share offering.
As an investor in the Company, it has been very difficult to follow a great project being managed so poorly at the corporate level both before, and after, the publication of the Pre-Feasibility Study. In our view, the Company’s latest attempt to fund raise unfortunately only demonstrates the Management and the Board’s lack of understanding of 1) their shareholder base and 2) the basic mechanics of capital markets.
We believe the Board should represent the entire shareholder base and not only a select group who might be exercising control. Hence, we urge the Board to act fully independently and begin a strategic review imminently to initiate a sale process of the Company.
Fortissimo - You goota be smoking the hopium and mainlining the copium.
Saying people can do their job and everything goon a be alright as the SP craters and instis leak their complaints to the market.
This is a co-ordinated and planned takedown to destroy the SP and sweep this up. BS in on this, management in on this.
Perfect timing as this drops in the middle of a world financial crisis.
After the BS note, I am now reviewing my prediction down and looking at a 20p SP by fundraise, plus a 10% discount, so a new 18p price for the issue.
Another week of this and I see that 17p or 16p is likely.
From the tone of their announcement it looks as if the suggestion of a failed fund raise in London my be true.
It's funny as there wa sa city rumour that BHP and NCM were going to make a bid. Redknight, we've been here before. You sell a few shares and then everything is all dire straits. You buy some and everything is all fab again. See how that looks?
They haven't tried to raise capital yet so you're rumour is untrue and unfounded. I know this as the new lady started just a few weeks ago and has been charged with exploring various options for finance. The cash pile is $26m which as you know will last for 4 months if pushed. There's no rush and the new lady will deliver. She's very good at what she does. Better than Ingo by a country mile.
Great find coldcut. The shareholder unrest begins! You'd think CGP will feel the same way.
Jeez.. is that genuine? I could have written that. Ouch.
.. are not very happy with the latest development: https://www.rns-pdf.londonstockexchange.com/rns/0991U_1-2022-7-28.pdf
Not flapping.
If your 'back story' is correct, why issue the RNS at all...it doesn't add anything...
But where have you ever seen before a naked statement that a plc HAS to raise money...$100m wouldn't be far off the mark...it makes them a hostage to fortune.
If the City rumour is true and they have tried and failed once (probably at an unrealistic price and/or with the copper price below the price assumption in the PFS), then their NOMAD or the lead banker for a fresh attempt will have told them to 'kitchen sink' everything in that RNS...
And the SP of any issue has to be at a low enough price for the market to believe that, subject to the market in general, this is the bottom and you'll never see that price again which to my mind could even make 20/22p a tad optimistic.
No I'm not talking my book...I would be delighted to be wrong for all the investors like me who have waited 2,3,4,5,6 years or more for the holy grail.
Meanwhile I'm surprised that nobody picked up on Taunton's statement that construction at Alpala won't begin before 2024...
How much longer must we wait...?
So useless he could run for our new PM
Fortissimo -
Any other routes will appear untenable or will never reach the light of day.
Almost 10% down after a few hours .... the market understands that this is going down.
Fortissimo -
Everyone in the industry dislikes NM and wold love to see him humbled.
Money and revenge is everything.
Cuzz is a wolf in sheep's clothing. He appears the right guy to do the right thing.
Get him in, fluff the fundraising until it's done at 20p. BHP buy a swath and come in at 30% ownership, then bid offer.
Whole thing tied up at under 50p per share. Cer-ching.
Relevant insiders and quislings paid under the table, the rest of us left shocked and shorn.
Fortissimo, of course what you say makes sense but it still doesn't hide the fact that we are in a very bad predicament here, one that either is resolved by a) a takeover or b) the BoD coming up with a cunning plan for moving forward.
NB: Simply ensuring that they stay in well paid jobs for the foreseeable future is not my idea of a cunning plan.
Quady you got any shovels!!
Quady you are delusional if you think they gonna take this to production they can't even afford to continue drilling ATM cash burn it needs selling imho a fund raise will send this to 10p at best and add millions of shares to the register,then they consolidate destroying the share price Franco will be concerned now and we only got 12 months left to get this to mine as the Ecuadorian government permit reads or they take control
It's funny you know... we can talk about the reality that a fund raise will be required to see through to DFS and we have all done that on these BB's for last 3 to 4 months. The market knew about it. Investors knew about it and yet when the company confirm the reality (which is the professional thing to do) there seem to be a few on here that suddenly appear surprised. Like I said a while ago... the reason for the Franco deal was that BHP and NCM wanted a cheap placing in the 20's and NM was having none of it. At end of the day, if BHP and NCM want to gain another 4%+ each then they'll have to pay north of 32p imho otherwise a royalty deal with Boliden or another looks better value.
Equity raise is the norm but is usually for a $40m stake and sorts the exploration. It's minor. The amount required for DFS is unknown. Could be $50m or could be $100m or could be $150m! Who knows? But as per usual this BB runs riot on speculation. It's pointless. The irony is, the $40m raise will help drive the sp through exploration catalysts so it's win win. The new lady may well be sorting a nice little partner deal out with Lundin, Solaris and Codelco. This RNS ensures that all those confidentiality ties flying around SOLG are maintained but also that 'we' all know for sure that something 'corporate' is coming. Astute investors knew this anyway... but stock market rules often require companies to deliver greater clarity these days on 'going concern' accounting procedures and my guess is that this is better than reading it in the MD&A. I'm chilled and fully expected this. Question is... will SOLG go down the Boliden route and draw BHP out to bid? That might be what's coming next and the sp will be 40p+ imho if they announce a boliden deal as everyone will assume BHP counters it. Game on. Stop flapping!
Quady you are quite the Pollyanna - you can see the good in everything, which to be fair is not a bad quality in a person.
But even you have to see the reality here - if we are finding hard just to raise the basic cash to survive for the next few months, how the hell are we going to raise the enormous amounts required to even start going into production?
There is no point putting on a performance if no one in the audience believes it.
We have painted ourselves into a very dangerous corner here - talking big but acting like a cornered mouse.
In any other share I've been invested in, I would regard our position today as the clear beginning of a finance death spiral. Of course, we have the reality of the vast resource we own to act as a theoretical NAV that will prevent too much damage, but what are we offering the market other than a string of begging bowls stretching out into the future, each one weakening the share price which in turn weakens our position.
We've been thumbing our nose at the big boys for years - don't you think they will be happy now to see us dig a money pit for ourselves and then "rescue" us by taking the whole thing off our hands in a fire sale once we get in too deep?
Also on the other side of the coin you cannot defend a bid with a hole in your war chest !
Fortissimo - it is you who is behind the curve.
The critical difference is that Nick was in charge when the Franco financing was done. Now we're led by the "friend of BHP" Cazzubbo.
There's less than zero chance of a streaming deal with Boliden. And that's probably now a bad outcome.
Kat2008 is probably not the best a million miles away from the truth. This could well be an opportunity for a major shareholder to consolidate and strike.
As I said yesterday - 40-50p. Msthersfinger - forget your £1.70 mate. Not a hope of half that.