Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Colonel re your comment "CGP do have other licence blocks and these have terms which require some cash burn to fund them so on average I think they burn around $500k per month but you'll have to hop over to their sedar reports and work it out for yourself.".
I recall in around 2017 CGP span off their other assets and concessions - so do they have this burn rate? not sure of the answer here.
Good morning ssmith_trader, Newcrest, BHP, and CGP, with their current holdings, do not get anywhere near a takeover. Please could you show your reasoning.
pretty clear from the wording that the majority in Cornerstone are not going to sell. As they won't then the bid for Cornerstone will fail. Doesn't take a genius to figure that out. Those that are saying SOLG have Citi working for them, forget that there are a number of investment banks out there too. Citi are not specialists in Mining M&A. Macquarie / JPM / MS / GS to name a few have done more deals in Mining M&A than Citi. The share price is telling you, even after this news, that NM has to do more. Only thing he can do is to tell us about better drilling results. Without this, stock stays around this level and come October we are bought. Newcrest + BHP + Cornerstone already have the shareholding required to take SOLG out come October. I think NM is on his last life. If he gets lucky, then luck him and us. Otherwise he is out - and I see SOLG bought for 40-80p max. - and that suits me fine too.
Good morning DBW, I think it's more than that. I expect an outline, as to how we acquire the 2.7 billion dollars to build.
So what is Nick's plan from here on in until October , simply to release news that will bolster the share price and make the current offer seem more attractive? And all the time the clock is ticking for Irwin & co . Irwin was appearing to change his tune a couple of months back when he said the deposit at Cascabel was without peers globally.
It's imperative we don't reach mid October with the share price still floundering around these levels , Nick knows this & Citi know this
Does anyone know how many shares Cornerstone have sold over the last few months? I wouldn’t imagine their overheads are particularly massive so why keep selling?
Hi Novicehunter!
Yes, I do still think that Cornerstone have already firmly rejected Solgold's offer.
(The statement about doing due diligence and making a formal recommendation later is merely legal cover to show that they are taking their fiduciary duties as directors seriously.)
But others obviously have different opinions, and many opinions go to make a world (and a market).
Thank you Colonel, next 14days, are going to be interesting, I await CGP's response.
Hi TBTT, do you still agree that the offer has been rejected out of hand as posted yesterday a couple of times ?
If so read carefully again.
Hi Smickster!
Here is Cornerstone's official response. It's a little more polite, but it's equally decisive in its rejection of the Solgold bid.
http://www.cornerstoneresources.com/s/NewsReleases.asp
Goodnight all!
As I have said, I don't see this as any sort of impediment, as too why, nobody has bid for Cornerstone. Looks like from what your saying Colonel, is that NM will acquire Cornerstone. Just our reasoning is different. All the best.
Hi Colonel!
Thanks for the post.
But, if "nobody is going to buy Cornerstone and that's their problem", then how do you explain their reaction to Solgold's bid?It wasn't the usual "no, but if you improve the offer we'll think about it" kind of corporate reaction. Taken all in all, it is one of the most decided "no's" I've ever heard, coupled with a few insults thrown at Nick Mather as well.
And why, if Cornerstone have such poor long term prospects, are Solgold bothering to bid for their shares at all?
To me, it doesn't make sense.
I can only explain what we know by concluding that Cornerstone do have real value to others, and that they have either already concluded a deal with another buyer (but this is still confidential), or they are in negotiations to conclude such a deal.
Thank you Richy.
Good morning Colonel, sorry I may be missing something, but my understanding is you are correct, but at the completion of DFS, they do not need to stump up the build costs, at that stage, only the costs up to DFS. Yes they will need to stump up the build costs, in increments, as we build. But not at DFS. Looking at the return Alpala will give once we have the DFS, CGP would have no problems financing this through loans, as we already know the payback period for Alpala allows this.
Quady....the following is taken from this site...
https://solgoldofferforcornerstone.com/why-accept-the-offer.php
“ Under the current structure, after completion of a Feasibility Study at the Alpala Project, if Cornerstone wishes to maintain its 15% interest in ENSA it will be required to fund its pro rata share of development expenditures at a minimum of 10% of the required capital on an ongoing basis during the highly capital-intensive construction phase of the project. SolGold expects Cornerstone will face significant obstacles in financing such contributions particularly with the current capital expenditure estimate of US$2.6-2.8 billion implying Cornerstone will be required to secure up to US$390-420 million of financing”
What I would like to know is how Cornerstones 15% of Ensa can be diluted under 10%?
I thought at the point of DFS CGP become liable for their share of development costs moving forward and on top of that had to pay 10% ish of all the monies already spent at Cascabel immediately.
Morning addicknt, you may be right, I am unsure how much CGP, would be required to pay at DFS. People have posted all types of figures. I estimate around 100 million dollars, which is a long way from the Colonels 400 million. Very possible I am wrong and not calculating this properly. Maybe NM will be able to acquire CGP. To me that would change the takeover dynamic. Not saying a bid could not be successful, as you have to my mind, laid out a scenario in the past, as too how that could happen, and I fully accept your reasoning. I do believe however, with the arrival of Franco Nevada, that this makes a bid more difficult, and if Solgold was to acquire CGP, more difficult again. All the best.
Morning, Quady.
I think your observation about Cornerstone is very valid. My only thought is that they may have been approached but were not tempted at this stage. Perhaps they are of the opinion greater value will be had when the gloves come off in October. That would make sense to me.
Colonel, understood...I was confused by your original post.
Colonel, my point is, if anyone brought Cornerstone, that they would get 15% of Alpala through the ENSA stake, they just need to cough up the readies, at DFS stage. It's not about selling the ENSA stake.
Good morning Colonel, may I ask why CGP's share of development costs, up to DFS comes to 400 million dollars. That seems a high figure to me.
Correct allthatguff, although I do detect a note of sarcasm. Still waiting for your reply on how China could launch a bid for Solgold, with the scenario, that they approach NM, and he says no. How may I ask they would do this? All the best.
It's probably toooo big to bid for :)
Good morning all, still pondering why nobody has bid for cornerstone. I realize that BHP cannot. But everyone else can. The money that needs to be paid at DFS, would not be an inpediment. This would offer a potential bidder, or a new party a way to increase share holding and a presence at Alpala. To my mind if a bid for Solgold was indeed coming, CGP would have been acquired by now. The question is why not.
Colonel, if an offer is made for SOLG it has to be made to all shareholders, including Cornerstone. A bidder cannot be selective in terms of to whom it makes the offer.
Tiger
Thanks for your reply.
Was under the impression that the official reply would come within 15 days and this was just advisory.