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I have lots of respect to NM for what he has achieved and done for SOLG.....HOWEVER, I think he is playing with fire recently and really hopes is not going to get burned....and us with him......the man is a legend so I hope he is not trying to jump a little too high with his ambition....see what unfold now.
Good morning everyone. I think further announcements, may shine a light on this. To me this looks like a distressed sale of equity. Could this be because time scales with The government of Ecuador, demand we step up the drilling on the other 3 sites. If so, I have roughly calculated, that the money, will take us to year end. By then, we will have the PFS, but not the BFS. Interesting times. For the first time, I am beginning to think, we may be under threat of a bid. Interesting to see how Citi, will respond to this.
In an ideal world, maybe. But I think you're seriously underestimating how aggrieved they are.
Still not seen any comments directly from BHP about how SolGold are raising funds! I think the journalist is assuming Newcrests displeasure is also felt by BHP? Pretty obvious NC is well and truly in bed with Cornerstone and will help in any way they can to help Cornerstone to oust Nick Mather!
Australian residents face legal restrictions if they want to participate, and participants cannot trade the new shares prior to October 10.
Interesting, I'm assuming this was for main fund raise and not the primary bid raising?
Also why the constant need to bring BHP into it despite not a single source ever.
I don't expect little digs in newspaper articles.
All they do is comment in a qrtly update that solg is no longer strategic they don't agree with strategy and they are giving up their board seat.
It's not the playground. Solg have done nothing wrong except follow the course they have planned with th Ecuador govt for ALL its shareholders
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''.
iceberg, why is it 'unprofessional'? They've been comprehensively shat-on by NM - how else do you expect them to react?
This is very much game-on.
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
Agreed Ice
Be interesting to see how we open today
That's really just newcrest though, we know that newcrest like to feed these stories to AFR which is strange and very unprofessional of them.
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) .........
https://www.afr.com/companies/mining/bhp-newcrest-bypass-solgold-fundraising-20200605-p54zvi