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Ok, so we were (allegedly) on a path to production. I always struggled to believe that, but if I’m an Ecuadorean government official responsible for overseeing mining exploration licences, I had a clear project path and timeline, PFS, DFS, mine design, build commence etc. All published on the company website, and all within the timeframe of the existing Cascabel license agreement. Now there’s nothing. Presumably any buyer will have to renegotiate (and possibly restart) the timeline from PFS. Unless and until that happens, the imm we have left on the economic evaluation stage is running out. As another poster likes to say on here...... tick tock.
Monte, the circular gives you all the clues as to which way this is going.
It's really worth reading through their circular.
I won't repeat all of the fascinating stuff it contains, but two things stick out: The SR was a condition imposed by CGP on SOLG in order to gain their support for the transaction. Discussions started in July of this year (there's a full timetable of the meetings/discussions)
It says to me, we were on a path to production, and that has clearly changed because the chairman,qnd ceo of cornerstone, warren irwin and Berry Street are all sounding very positive about the whole thing.
“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.”
Sorry to sound facetious.... but isn’t this what any decent board should be doing ALL the time? I get that the combined companies may have different strategic goals than the individual ones, but it begs the question what path were we on before this “swift” action?
It is indeed, a welcome positive change of thinking..
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.