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Hi RICH3R, they are the ones that say with certainty that we cannot go it alone under any circumstances, they said this would be sold before the PEA, They say this will be sold before the PFS, they have been saying this will be sold for 8 years.
Those are the ones I am on about.
They are also the ones saying it's impossible to raise the finance.
These are the ones that attack me, with no reason apart from I have never run a company, or dealt in cooperate finance. Which is true I haven't.
However that is their argument, they point out, that I haven't run a company, and think that is some sort of argument.
I have been investing 40 years now, and have seen many companies in the Oil and Gas sector borrow money, under all sorts of conditions. Some of the arguments on this forum are crazy, but people believe them.
hi Quady - may i honestly ask you who these so-called 'experts' are on this BB to whom you keep referring to ?
I for one have never-ever pronounced myself an expert, and to be fair, I've not seen other posters doing so either ???
schlem, there IS NO OTHER DEBATE on the market right now. What do you suggest ?
I agree DartFrog.
I am amazed at some of the so called experts on this site, as the one thing you require in business is a can do attitude.
Makes me think, they haven't any idea on how this will go to production.
They are so blinkered and believe we must sell it fast, which means sell it cheap, so they can spend the money .
All the best.
Not "again" Shlem, "still. It's never ending. Same thing for years.
Oh man, not this feckin' debate again. I'm hoping for a bid so that I don't have to read the same old sh-t on here day after day, ad infinitum. Mather, put us out of our misery ffs
Hi RICH3R, hope you are good.
The latest debate with Redknight isn't about if we go to production, and he keeps on going on about production.
It is about the terms that Franco Nevada gave us 100 billion to get us to DFS.
My argument is you don't hand over that amount of money, without understanding the business plan.
So I am saying that talks on a comprehensive scale have taken place between Solgold and FNV, otherwise they wouldn't have given us the finance to get to DFS.
It's no more than that.
Ask yourself a question, would you give someone 100 million dollars, if they didn't have a business plan.
All the best.
The question about whether or not it is possible to go it alone keeps coming up. If we are not going it alone, why have we arranged finance to take us to DFS/BFS? People on this board keep saying that we will never be able to finance the building of Alpala nor any of the other mines that we are planning to build. First we have to build Alpala.
Why are we not able to build Alpala? The mine contains x million tons of copper multiply this by the price of copper (use a fairly conservative price) , take off a percentage (say 5%) as some won't be possible to extract, etc. This gives the value of the asset and can be used as security. Provided the cost of building the mine is considerably less than the value of the asset, we can borrow against the asset. OK the loan may be too big for one bank to provide on its own, so the lender will probably get together a consortium of lenders. This is normal banking practice, OK BHP might achieve a better interest rate compared to Solgold, but we are only talking 1 or 2%. This is doable and in the unlikely event that we should go bust, then the bank/s sell the asset to a major or the Chinese, etc, at a good price., i.e they get it cheap!
I used to work for an American bank in London a good few years ago and we did this sort of lending, usual as part of the consortium not usually the lead. These days there are more sophisticated instruments available than there was in my day and in any event I decided that I was more interested in other forms of banking and my career took a different course.
Anyway, my point is that there is all sorts of ways we could raise money, not only by bank loans, as above, but secured bonds, convertible or otherwise, royalty deals or even a rights issue, or more likely a combination of all of them.
It is certainly possible to do it alone, we could do a JV but these, from what I have heard, often finish up with winners and losers. So only a 50:50 or more favourable to us JV please. Or we could sell off one of the sites. In other words there are plenty of possibilities without us having to sell up cheap!
This is all my opinion only.
hi Quady, it seems that many posters don't agree with or like the recipe that you're dishing up as to how SOLG's assets are taken forward.... via production, because the timescales are far too long, and there's real threat of dilution along the way.
We are all entitled to our posting-views of course, but for someone regularly posting 400 plus posts a month, by my calcs, most readers aren't agreeing with your views via their recommendations ??
Typo ... not
Add it’s an ongoing problem
Fortunately for me Q and myself agreed to filter each other a couple of months ago so as not to clog up the board with drivel ..... we agreed to disagree and I’m sure neither of us are “ spineless enough” not to go back on that ...... I can say hand on heart I’ve bot read a single post of his and have no intention of doing so ..... hopefully he’s kept his word too .
The only reason I know he’s commented is that he’s the only one left on filter
Quady I would disagree with you there when I financed my house on a 25year mortgage
The bank new its unlikely I would still be there in 25 years time but they had the security they need to make the deal happen
RK, I had endless months of this from Q. The fact is he's incapable of comprehending anything which doesn't conform to his own preconceptions - all of which are wrong.
I give in Redknight, you haven't read what I have said, wherever we take this to production or not doesn't matter.
Please reread what I said, as you are answering something completely different.
“Either SOLG will JV Alpala or...
SOLG will get taken over...”
Clearly these are the only logical options ..... anyone with half a brain can see this .... however there’s always one who flew over the cuckoo’s nest
Do you know what...this is you all over...and you wonder why people get frustrated with you...
You make categorical statements and then when anyone challenges you, you wriggle, defray and even do anything to ever admit that you don't actually know everything and sometimes you don't even actually know what you are talking about...
They gave them the 100mil for what is in the ground not who owns Alpala.
Its not "we're taking this to production" or "we're not taking this to production"...
Its "this is going to production" or "somebody's taking it to production.
FNV could do the deal and the next day SOLG could receive a knockout bid that Nick accepts. FNV don't care...its implicit in them doing the deal that FNV assume Alpala will go to production...if it doesn't, somebody has a liability for $100 million...
Using inflammatory language like "Which means that NM and Ingo and the BOD have been very naughty and have lied to us" doesn't exactly endear you to people.
My opinion is perfectly clear:
Either SOLG will JV Alpala or...
SOLG will get taken over...
FNV don't give a toss as long as they get either their gold or legal recompense for cancellation of the deal.
Your opinion is that SOLG will take Alpala to production and you assert any argument you can to support this, when the truth is, whatever Nick or Ingo said, you don't actually know...Nick has also said it would take a blockbuster bid for him to sell...that implies that there are circumstances where he would sell rather than take Alpala to production...
smickster, I have said that, you seem to be agreeing with me, and then saying I am wrong.
Please read the statements I have made.
again Redknight you are not answering the question.
It doesn't matter if it's sold later on down the line, what matters is FNV understands the route to production at the time of the loan. Would you lend that much money, without understanding how production is achieved.
Nobody gives you money, without a business plan, and the plan cannot be, we are bluffing, we are going to sell it.
Solg took the 100mil to bring to dfs and that's what they are doing with the money.
As far as i see it there is no clause that says they can't sell it on so they are fulfilling there part of the deal by completing dfs
"Why would Franco Nevada give Solgold all that lovely money, if they were not confident that Alpala would get built."
Of course they are confident that Alpala will get built, but they don't care who owns it...
"if FNV thought NM was going to sell Solgold to the highest bidder they would not have given them 100 million dollars for the 1% NSR."
Once again they don't care if Solgold sells to the highest bidder...they still get their stream...
"My point is you don't give someone 100 million dollars, and the promise of 50 million more, if the conversation is we don't intend to take this to production, we are going to sell it.
On that basis FNV would have said no deal, your not getting the money."
SOLG would not have been dealing with FNV if they had any intimation of a bid...that would be illegal...but they DO NOT have to rule out selling the company at a future stage, so...
All your arguments about FNV DO NOT guarantee SOLG will take Alpala to production and CANNOT prevent a takeover before production is achieved...
My God you're obtuse...
I am sorry newtoit business does not work like that, you don't lie to someone handing you 100 million dollars, that's called fraud.
UT should read UTC, means Under The Counter DEAL...
Why why why do people constantly refer to the UT transaction as a “Big After Hours Buy”. It’s not a buy.