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.
Well it’s q4 next week… it’s been a long wait… and I’m expecting the RNS for either PFS or Porv in October. Darryl and the board must deliver something before AGM, and must be seen to be capable of hitting milestones.
They also have to address our funding path to DFS.. If they disappoint again by releasing the PFS update, without clear funding to DFS, the market will simply give another shrug of the shoulders to our news, regardless of how large an increase in NPV they attribute. If there is no funding news, then Solgs traditional spike and immediate sell off will occur.. only this spike will not get over 30p
Colonel...
BHP only has 13.5%...
We have the best portfolio in Ecuador...
If they tried a low ball bid they'd be swamped...
Sorry for the late posting...been on the Kwasi
Q, yes, the DFS is a milestone for us, but not for BHP. They'll already know that the project is feasible and of course, they don't need a BFS as they'll be funding it themselves.
In fact, your post highlights the reason why BHP wouldn't want to allow us to get to a DFS. 1) it will increase our value (hopefully) and 2) since they don't need it they could easily be thinking "we're not stumping up any more cash for SOLG just so that they can increase the value and benefit their shareholders when the study is of no value whatsoever to us"
As you know, I fundamentally disagree with you about the dilution question.
The problem as I see it addicknt is slightly different.
If BHP and NCM take part in the latest fund raise.
Then we get to DFS and the game changes.
Because as Darryl says other funding options open up and we can construct Alpala with minimal dilution.
So they need to take part to maintain their percentage, but don't want to as that gets Solgold to where it wants to be.
We will have no trouble fund raising, but will be interesting to see what form it takes.
witnessing the denouement of the power struggle between the company and BHP/NCM? Has their strategy been to fund us to the point where we know just how important the asset is and at a critical moment to then attempt to starve us of cash? When that article in AFR (I think) said BHP/NCM were not prepared to put in more cash, what did they actually mean? Were they referring to the structure of the proposed fund raise or, was it a statement of general intent?
If this is their game it strikes me it's a high risk manoeuvre. The company has proved in the past that it can raise money from other sources and even if this proved difficult, would BHP really push us towards administration? The risk of that route is that in an auction of the assets an administrator has to accept the highest offer and there's no guarantee that BHP would win, particularly with their recent track record. There's also the risk that the Ecuadorian government simply take back the assets/concessions and then parcel them out to other parties.
In the light of yesterday's site visit, it seems possible we are targeting new sources of capital in attempt to circumvent BHP's influence. If this is the case it will be fascinating to see how they react.
Of course, I could be totally mis-reading the situation and everything is sweetness and light between us and them and we are cruising towards another successful fund raise with them contributing their share. But somehow it just doesn't feel like this to me.
Tesla1, what do you man 'huge amount of cash'? Do you know how much they need to raise? Are you referring to the Capex required to DFS or the Alpala project cost to development?
SOLG raised $178m last year with minimum dilution. Would you call that 'huge amount of cash'? Mather was 2 steps ahead of the big boys when he got that raise away. I guess we'll find out soon whether he's sticking whopping their super major @rses.
I cannot believe anyone would post what you have…..
If the info not in the public domain was so great and valuable those in the know would have spoken to colleagues/friends and the price would not be dropping like a lead balloon.
The simple facts are the market is awful, they are running out of cash and potentially need to raise a huge amount of cash.
All in all not a nice ****tail of circumstances.
This could as easily go belly up and the vultures devour the carcass or they might scrape through however one thing is certain Mather got greedy and PI’s are paying the price.
He thought he was 2 steps ahead of the big boys maybe he wasn’t……
Either way the company is on a tightrope who knows if they’ll make it to the other side
Fort, there's a big difference between a confidentiality agreement /NDA and an agreement barring trading in the company's stock.
The former is understandable if unlikely to still be live now but the latter makes zero sense. Nobody is going to sign to re-lock themselves in on the basis that they had some conversations two months ago.
I suspect we're close now anyway. Insti shareholders will have been told to bring their chequebooks and their laptops to the Alpala camp today and I'm sure we'll hear about something pretty soon.
The reason the big boys are not buying in the open market right now is most likely down to the Confidentiality agreements they signed. Just because a funding discussion some months ago ended with different views from different major holders, those involved are privy to info that we are not. Many will still have hands tied imho especially if II and analyst visits are ongoing. So that's why there's no major volumes or 'abuse' of positions/knowledge.
Today we've had £285k traded. I'm sorry but for a market of near £400m, it kind of puts it into context doesn't it?
It's been like that for days and weeks now if not months. When we had large volume, it was to the upside. So that's good to remember. All the downside of late has been on very light volume showing no real conviction despite what some on here seem to suggest. If we we're tumbling down to 16p from 26p levels based upon 20m volume days... then I'd be worried indeed.
And finally - I know it sounds like like the same old rampty damply do stuff... but seriously... if ever there was a time for BHP or another to take a dart at SOLG, NOW would be it.
1. Cash pile low and shareholders away the companies solution/funding outlines
2. Many II's and Pi's would be delighted with a cash deal in this current market
3. Currency (pound woes) at present makes SOLG effectively 30% cheaper regardless of the offer price.
4. Weak BoD's, loss of CFO... all that boardroom 'apparent' jiggling around etc etc
That's the magic recipe for low ball takeovers. It's prime time for BHP.
And just imagine if you are an OZ Minerals Shareholder (sizeable one). Right now BHP's offer or possible revised offer of $30 will be a market high for some months / even years. If BHP walk away, Oz Minerals will collapse back down to $16 levels.
This is how the predators work. They present the offer and then let shareholders contemplate the share price based on a failed offer. And they do it in a very uncertain and poor market environment. 2 or 3 years later, things are looking better for the new owner/acquirer and the asset looks a steal.
The fact that BHP haven't made an offer yet might support the idea that they too are worried that if they do, then someone like Wyloo or fortescue could out bid them like on Norornt. So BHP have a chance to 'talk' with SOLG and see if they can tighten their grip on SOLG (from predators) but do so in a way that still allows SOLG to create cabs off the rank (as he says) and so they can keep their jobs and nice bonuses. At the moment, doing a deal that also pledges BoD's their jobs via voting at AGM might also look attractive to all. As if the BoD dish up anything pony, then Pi's will vote them out with force and there's loads of pi's here. Probably over 35%+ of shareholders are pi's or HNWI's (or NON II's) that's my guess.
All to play for but time not on SOLG's side with AGM resolutions due to be presented to shareholders around early NOV.. that's 5 weeks away tops.
RNS coming I think soon gla
Quady that would be fine with me.
Concentrate on Cascabel first worry about the regionals when things improve market/sp wise.
Small raise in the interim.
All guess work as usual.
Who says we're desperate for funds? We haven't clue what's going on.
The terms would be worse this time as everyone involved in the industry knows we are desperate for funds… Nice one Darryl
Interesting Smickster a streaming deal could only be for Alpala though as no one is going to do a streaming deal for exploration.
smickster:True their CEO did Mention SOLG in last weeks presentation
Fair enough Smickster.
Jezzo the longer this decline goes on the more chance I think we have of seeing another FNV type stream deal being put forward imo.
Hypothetical but if SolGold turned round in 4-6 weeks time and said "we can't get the cash in to be a going concern", would the story have changed for you then?
Of course but highly unlikely imo. We have raised in tricky positions before early 2016 if i recall we were down to our last few million.
You say the recent raise is a new development and I say its a continuation of our largest investors rocking the boat.
A matter of perspective maybe.
Lol Bozi
You may be right …. Oops
People weren't selling in sufficient size when Norges bought were they RK1?
There was a lot of closing auction action. Why not now?
I happen to agree about sells being exhausted but there's very little evidence of the slack being taken up, probably for the reason Addicknt mentions.
The likes of yourself, DBW and one or two others have probably propped us up the last few weeks.
Every week that goes by with a declining SP means a bigger placing making for a larger % of dilution.
I hope the BOD has a plan up their sleeve or a bid in the offing.
Agreed Bozi but they can only buy if people are selling in sufficient size...
Just look at the volumes for the last 3 weeks or so...
Agree with your second point.
Regarding your first, they haven't seen eye to eye since the Franco stream but they still maintained their stakes at the equity raises offered to them. This time, for whatever reason, they've said no thank you to whatever SolGold had planned.
Either way, it's a new development. It reduces Solgold's funding options, along with the poor performance of the market and that has to change the story.
Hypothetical but if SolGold turned round in 4-6 weeks time and said "we can't get the cash in to be a going concern", would the story have changed for you then?
They have not seen eye to eye since the Franco stream deal and probably before....its not news and imo no change to story.
Some believed removing Nm would improve the relationship between solg and our largest investors, this was never going to be the case.
More importantly why are we running down the clock to our investment commitments?
We don't seem that bothered about this.
I'm guessing if we lost the tenements, they wouldn't be that easy to distribute due to the changes made to appease the indigenous community.