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Good news
Thanks Paul
https://twitter.com/bigdude6669/status/1602670269830660097?s=46&t=ZCeJzUdQJQaJjTDwXtxriw
Berry Street fully support the Board..
https://twitter.com/bigdude6669/status/1602671237276344321?s=46&t=ZCeJzUdQJQaJjTDwXtxriw
Let's hope it's not Christmas pudding, as I can't stand the stuff. Let's also hope it's not Summer pudding, as that's also garbage.. Unfortunately I'm not aware of the existence of a Spring pudding, but ideally that's when I'd like to be indulging in here ;).
Onwards and upwards as the locals say.
"Since announcing the merger, the SolGold board has acted swiftly to position the combined company on a path that is in the best interest of all shareholders.”
There's the pudding folks. Let's hope it is tasty.
I can't paste it. You will need to go to their website
You should not put too much stock in the ‘sale is not shared by the market as even today the price has dropped’. The last time the market was so optimistic about a takeover was when it was in fact the least likely time for it to happen. The market is always right and always efficient. Until it isn’t.
Good posts SM and Rcgl2.
Hi RK, after the merger completes Solg shares will continue to be listed on both London and Toronto, and one of the conditions precedent for completion is the approval of both TSX and LSE for the listing and admission to trading of the new Solg shares to be issued as part of the transaction.
Technically the hydroelectric plant is not part of the Strategic Review. It's part of the "Project Advancement and Exploration" for Cascabel, alongside a whole load of other optimisation options. The strategic review is looking at a non-exhaustive list of 4 items.
The optimisation process for Cascabel is presumably to make the economics more attractive. I don't think that precludes the scenario where an full or partial disposal occurs for a higher price, which feeds into the strategic review. I just don't think you can selectively cling to the hyrdoelectric power item as a signal that this is or is not getting sold.
Strategic Review
The Board is focused on maximising value for all shareholders. A Strategy Sub-Committee led by Non-Executive Director, Dan Vujcic, will continue to advance the previously announced Strategic Review as a top priority.
As previously disclosed, the Strategic Review includes, among other things, evaluating and pursuing value enhancing opportunities for the Company such as:
· evaluating financing alternatives for the Company that endorse project value;
· a spin-out of assets, other than the Cascabel project, to all shareholders;
· the direct or indirect sale of an interest in the Cascabel project at prices that endorse project value howsoever effected; or
· any other transaction or series of related transactions.
Project Advancement and Exploration
SolGold is focused on advancing Cascabel in a cost effective and value maximising manner.
The Cascabel Project Team is rigorously reviewing all opportunities to de-risk the project, reduce costs and further improve project economics. The Project Team is investigating an expanded list of optimisation opportunities and upside options including:
· Alpala underground mine design optimisation;
· improvements to mine and mill production rate;
· inclusion of open pit resources including at Tandayama-America;
· process plant design optimisation;
· opportunities for improved metallurgical recovery;
· improving gold recoveries;
· capital and operating cost reduction opportunities;
· hydropower project development; and
· project execution strategy.
Thanks for the reply SharketMare that all sounds really hopeful and optimistic which is good. I willl want my money out by this time next year at the latest and it sounds like that is guaranteed which is great.
Thanks Redknight1. I hope you are right
red, if bidders wouldn't wait until the merger was complete, why have we bothered doing it at all, and why haven't the bidders bid up until now? The merger is the key here. It makes ownership of Cascabel and therefore a takeover much simpler.
Quady, I don't think Solgold is spending any money whatsoever evaluating the use of hydroelectric power at Alpala. Not a cent.
SM I cant see why a bidder would bother waiting until the merger is complete///
OK so things would be cleaner after 9 January, but...
! Although if somebody bids now, CGPs 15% is outside, but I think they would be left in a vulnerable position whereby the bidder could hold them to ransom to sell the 15% at a knockdown price...otherwise they could simply go ahead with the intention to build, and where would CGP find the $50m plus to pay for what they already owe, at the time construction begins...31.12.2023?
2 If somebody bid now, unless it was a knockout bid, say 125p or more, there would surely be at least one counterbid and the 'battle' would go well beyond 9 January before any takeover was complete. I doubt that a determined bidder would be too worried about the 'juggling'...
SharketMare what are you on about.
The hydroelectric is in the strategic review.
You know that thing that's happening that everyone says is proof of a sale.
When in fact it's completely the opposite.
Ask yourself why is Solgold spending money doing this.
What do you disagree with Copperpot?
I don't always see eye to eye with Redknight but nothing in that post is wildly out of place.
Specialist funds do arb mergers and other special situations. That's a fact. SolGold's transaction with CGP should provide an opportunity for them.
Really good at it that should read. That's regarding your 10.11am post.
Your desperation is pityful.
RK, you should write children's fiction books! You'd be really at it!
Talatum...
"The market "is people panicking and selling as the price goes down and shorters selling, while others who plan to profit from the takeover are hoovering up on the other side...
Now it makes sense...
Although the volumes in CGP have been poor that dioesn't mean that sizeable transactions haven't taken place...
As I mentioned before...there may well be many CGP shareholders who don't want to exhcn age their CDN denominated, Toronto listed shares for sterling denominated shares listed in London.
So supposing they find a buyer who just happens to be a 'merger arbitrageur'...the latter buys the CGP shares at below full value, meanwhile shorting the target company i.e. SOLG...
Then closes the short before the merger goes through and pockets the difference...
redknight1, I am worried though . Your and others view about sale is not shared by the market as even today the price has dropped when there is a sea of blue on my watchlist.
Agree, brilliant post RK.
1981Investor - the person advising on the strategic review has said it will be "fast and smart". What that means is naturally open to interpretation, but given the pace at which things have moved since our former CEO was ousted, I would be disappointed if we hadn't heard news of some sort of value unlocking event by the end of June next year.
There is also the possibility that things move much quicker. As soon as the merger is complete, Jiangxi might table an offer for the whole business, which would force BHP and/or NCM to respond if they want to own Cascabel.
Finally, the outcome of the strategic review might result in the situation posited by Bozi, in which the regional licenses are spun off from Cascabel into a NewCo, and SOLG retains ownership of Cascabel. At that point, we'd essentially be selling the asset + any value assigned to the equity we've built up under the Solgold name on the ground (not a lot, but important given the country we're operating in). Investors would also be given free shares in NewCo to maintain an interest in the regional plays.