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Has been extended by mutual agreement by 4 months ( from 11th Jan to 11th May) So we still have the option to take up this offer until 11th May. As stated in the report Solg are open to all forms of financing ( not just more equity offerings) and IMO the fact they have extended the time they have to accept a further $50m loan demonstrates this and hopefully gives BHP & NCM food for thought if they are trying to get a cheap placing!
I continue to learn a great deal about new mining methods. Hope we are using MicroMine.
Fascinating and I may even stay in view of this evening's RNS. A lot to digest.
Our tenements are/should be worth even more as new licences are subject to stricter approval, if at all!
Peeps will be flooding back in - majors will be scrambling -expecting blue come Monday!
Happy days ahead. Cheers!
MDA broadly inline with my expectations. Cash down to approx $90m so $25m burn between Sept 30th and Dec 31st. Rougjly $8m burn per month. So end of Feb would see them down to about $74m. I'd guess that $60m of that is ringfenced. So poss $14m left for exploration??
Confirmation that Alpala funds are ring fenced and the going concern statement clarifiies that there is insufficient funding for the current exploration plan which to be fair management flagged in the last RNS, citing June/July for when exploration budget runs out.
Franco $50m top up is still on the table and available through to April 21st. or thereabouts. Perhaps that's a loaded gun to BHP's head to ensure they play ball with any equity placings/pricing?? Once this $50m deal expires, SOLG's hand weakens, so my guess is they might seek to do a further exploration funding round in April. That said, the $50m should be ring fenced for Alpala and we know they have changed tact on that recently and opted to drill more... and spend more.
So conclusion would be that if they want to drill Rio, then funds will need to be raised for that which has been cited for Q2 which is as good as April/May/June. So perhaps that's the carrot for further placings/funds??
There's no mention of whether they believe they are fully funded on the PFS as far as I can see so if I've missed that, can someone else paste it up.
By suggesting that they are not fully funded for future exploration suggests that they are ok for the PFS?? I guess the extra $50m franco cash on offer covers that risk? DId they include that in their view on access to funds?
Personally, I can't see $60m lasting through to the PFS so they wil either need the Franco $50m top up or that will need to come from BHP and co via placings. So $40m extra for exploration in H2 followed by $50m extra for PFS?
$100m raise due in 2021? Not all at once ? Or will they attempt to raise in one go ahead of Rio and use that drill as the sweetener for shareholder participation (eg retail open offer).
That's MDA ticked off. Election on April 11th next up. Then equity placing is my guess.
The raise from Valuestone (Chinese) of US$5 milliion at US$0.42 cents announced 12th November was to be used specifically for advancing Porvenir, so I presume management will use the money for that purpose.
Cash position seems a lot better than most feared ie a cash raise in next few months. I've been quite negative recently but feel happier today than last Friday. Let's give the new BOD a few months and judge them after that. Hopefully, they will organise a webinair in the near future, where they can be questioned or interrogated, depending on your stance.
BTBanker - explain your comments to your message at 13.52 - why would we be heavily diluted etc
Just finished reading it.
On the whole upbeat.
Looks like we have extended the ability to drawdown the extra 50 million till May, so the conspiracy theorists that said we have forgone it to work with BHP are wrong yet again.
Also the explanation that we have changed the PFS because we cannot afford it is wrong, yet another problem for the conspiracy theorists, as it gives a full detailed explanation why the redesign was necessary.
Lastly I didn't know this next bit, I will paste it in.
A 2% net smelter royalty is payable to Santa Barbara Resources Limited, who were the previous owners of the Cascabel tenements. These royalties can be bought out by paying a total of US$4 million. Fifty percent (50%) of the royalty can be purchased for US$1 million 90 days following the completion of a definitive-feasibility study and the remaining 50% of the royalty can be purchased for US$3 million 90 days following a production decision. The smelter royalty is considered to be a contingent liability as the Group has not yet completed a definitive-feasibility study at 31 December 2020 as such there is significant uncertainty over the timing of any payments that may fall due.
Reads ok to me
I think he is referring to the fnv 50m.
muted response so far..
where's the loan part zoros?
A big thanks for shareholder support in agm.
Recap and in addition to RNS:
$91Mn in cash.
Alpala fully paid up until well into 2022.
More drilling @ Alpala to determine full dimensions of mineralisation.
Regionals paid up until March 2022 and more money paid by Chinese ($4Mn to continue with Porvenir). Porvenir 21000m of drilling coming! Tick tick.
Rio - Major drill campaign in March 2021. Tick.
Tandayama Americas continues to excite them. Tick
3 other smaller sites require further drilling.
No issues regarding licence/lease costs.
No issues from GE in Ecuador.
No issues from regional protest vote affecting existing projects. (Cascabel was specifically targeted by environmentalist movement but rejected by C Court in June 202.)
12 million shares dilution paid out. (Chinese).
12 extra specialists being hired to support Solg going from discoverer to developer.
Main takeaways for me:
PFS - caution and due dilligence is being applied to get this right, reducing the CAPEX. Tick
Finance. Currently solid. CFP looks like it might appear well before the PFS (which is Q4/21).
Political landscape - looking bright(er).
Management. Restructuring well underway and in the right direction.
Regionals looking promising, especially Porvenir.
Production definitely not before 2028.
I'm a happy bunny.
Sell the lot at 60p
Normally I hate Friday's late RNS,HOWEVER ,with so much to read and digest (and the fact I am not as sharp as in my hey days....)I am glad to have the extra time the weekend present....crikey, so much to read....anyway I wish you all a good weekend,DYOR,and most important stay safe.
Extended loan from chinese
What Chinese Loan...?
See my detailed note above on the MD&A sire...
Highlights from MD&A Report
Cash $91m at 31 December
Publication of the PFS is not expected until Q4 2021
Total of 48,000 metres further to be drilled at Alpala in 2021
20,700 at Porvenir
2875 at Sharug
2875 at Cisne Loja
5750 at Blanca
8500 at Rio Amarillo
12,000m planned drilling program at the high-quality Varela porphyry copper-gold target, planned for commencement in Q2 2021
At least three additional areas of surface mineralisation are planned for drill testing in 2021 as La Hueca remains a priority target showing further potential as a copper gold porphyry discovery.
Stream sediment geochemical sampling at Chillanes has returned the highest copper results from any SolGold project in Ecuador with best results including 1,140 ppm Cu and 1,110 ppm Cu.
At the time of writing (12 February 2021), 99.96% of valid voting ballots have been counted so far with Andrés Arauz from the Centro Democratico Party securing 32.70% of the votes for President. In second place is Guillermo Lasso from the Movimento Creando Oportunidades (CREO) party with 19.74%
Ecuador’s Constitutional Court approved the popular consultation on mining in 2020, but noted that it would only affect future projects and would not affect current granted licenses.
Planned expenditure for six months to 30 June 2021
Cascabel US$30.6 million
Regional Projects $21 million
Total $51.6m which means after Cash Admin costs leaves c$35 million spare PLUS the FNV $50 million if taken up
So no equity issue needed for at least six months
"Despite the need to raise funds within 12 months for the regional exploration activities, under the Company’s worst-case scenario, the Company has sufficient funds to operate until March 2022, and in the case of the Alpala Project, significantly longer, as funds from Franco-Nevada are ring-fenced for the development of the project and all exploration activities on the Cascabel concession, and related working capital." (In January 2021, the two parties agreed to extend this option by four months.)
Finally, given that I have previously suggested the possibility of an IPO for Green Rock Resources, it seems significant that ALL THREE of the Priority Targets (Porvenir, Sharug and Cisne Loja will be drilled in 2021...
Must be my age but is this the first we have heard of this???
I for one welcome prioritising sites, if rigs are relocated from lesser perceived targets to focus on those more promising targets then all good.
I was getting concerned about too many targets leaving us thin on the ground and incurring expense so any consolidation at this stage is good in my book.
OC, La Hueca has been known for some time now. Conversations with IR confirmed that if read you between the lines.
Firstly I think the market got a sniff that this was coming. At one stage it was up 8+%.
So that tells me they like it.
Having read it briefly, I see this:
Extended loan from chinese for uptake of $50Mn.
La Hueca + 1 is a dud...but the drill regime was a small one. Nothing found. Move on.
Rio - Starting in March...the siz e of it looks promising.
Porvenir - very solid, even very good grades and depths. I for one am pleased with this thank you very much.
Mining concessions for the 4 year lease of their licences - have been clarified and the 4 years starts after all permits have been rec eived. Solg therefore has some way to run - tick.
Money in bank for Alpala till well over a year from now. Tick.
Money in bank for regionals until March 2022. Tick.
Ecuadorian elections result favouring Solg. Tick.
Southern Ecuador mining rights vote - applies to NEW concessions not existing. Tick.
All in all...I am comfortable with a very transparent and comprehensive RNS.
But this is before I read the Sedar report.........
Definitely glass half full ....and I think the markets thought so too.
Under the Company's worst-case scenario, the Company has sufficient funds to operate until March 2022, and in the case of the Alpala Project, significantly longer...
So, the $100m takes us beyond PFS?