We chatted to IronRidge Resources' CEO Vincent Mascolo who explains why the company has become a lithium explorer. Watch the video here.
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Having BHP and Newcrest on our register convinced Franco to sign up to the royalty deal. The presence of those two majors on our register and the political backing of the Eckwardoorien government should not be underestimated
I suspect Franco appreciates that when BHP-Newcrest do take control of Alpala the process to production will be much swifter, cheaper and efficient
If you were a banker how risky would you perceive loaning debt capital to a cashed-up, easier access to debt capital BHP-Newcrest combo developing Alpala relative to a cash strapped explorer like SOLG that's never built a mine in its entire feckin' company life? You'd go with the former, obviously
Debt capital to SOLG is a gamble. Debt capital to BHP-Newcrest, BArrick, Rio etc etc is not so much a gamble but an investment
It's a mortgage provider loaning a 100% mortgage to a single person with a single income to buy a 250k property versus loaning money for the same property to a dual income couple with a cash balance of 500k and other assets to fall back on as security
And this is Ecaudor so bankers are gonna want a premium for loaning capital to companies operating a higher risk jurisdiction
Take away BHP and Newcrest and SOLG would struggle to raise this level of capital and those who think differently are talking out of their rectimus rearendimus
Now that makes a lot of sense scoott...
Clearly CGP weren't able to prevent the FNV deal. Nick/Ingo have referred to completing the Alpala funding entirely with streaming/debt.
If they did that, CGP would appear to be stuffed on two counts and maybe that's why they've been so hostile.
1 SOLG Full fund their part of Alpala to production
2 CGP have to find their prospective funding without being able to pledge their 15%. It matters not that they don't have to pay a sou until late 2021. The question is how they fund it after 2021.
No wonder they are desperate for a 'takeout' offer for their shares/stake. They get cash now to develop the rest of their unimpressive portfolio; they avoid the contingent funding liability that would have to be stated in their Accounts.
So I'm now coming round to the view of funding Alpala to development; 'banking' that and refocusing on the other 'Tier 1s'
The only things would vary the projection for Alpala would be"
1 A JV with say BHOP on terms agreeable to SOLG (don't think CGP would like that...jam tomorrow...) or
2 A blowout bid for the whole of SOLG, with my continuing favourite being Barrick
AIMHO as usual...
That’s the day BHP are free to vote against any board resolutions, and or submit their own. Things hopefully will be a little clearer after 19 Oct. Personally think NM has played a blinder, all he needs now is a couple of the other prospects to come in, hopefully Tier 1 and we have a multi billion company. Personally think best deal for Solg shareholders is to hive off with an upfront royalty deal, use the funds to prove up the other prospects in succession. Once gold is flowing 2025 hopefully we will have 3 to 6 other Tier 1’s proved up and we can seriously look to development of these through to production. I think NM has the ambition and capability of turning Solg into Another Rio Tinto, with a Barrick thrown in for the Gold. Anyway whatever the outcome the shares will not be nearly as affordable again. Gla
Err that's what I said?
I think in his recent interview Nick said it would be $52 million that CGP would owe for their costs of exploration
Miagi, don't be so hard on CD, c'mon. Technically he is correct is he not?
Solg debt fund CGP through to the FS upon which they will owe $52m.
Yes this is paid back through royalties post production but it is still "owed"...
And of course the 'piece de resistance' is that CGP then have to decide if they wish to contribute their 15% of develpment costs (est $3Bn and counting) towards building the little beauty. OUCH!
ATG: I think you have something there, methinks. NM sees Fortescue Mining (FMG(ASX)) as his shining light. He thinks he could be another "Twiggy" but in Ecuador.
Good luck to him if that is his lifes desire but please Nick, do it properly...JV with the right partner and don't forget the PI's who helped you along the way!
Some posters are trying to make out that Nick will be designing and digging the mine himself. During his digging meal break he will be driving extra rigs to Porvenir, oh yeah he will also be taking rock chip samples from another site, the jobs are going to be endless for the poor man!
In a couple of months there will have been many more appointments at Solg Towers and Nick can take a bit of a back seat so to speak. In fact the back seat could be a chase lounge with a box of Kleenex to hand! Don't underestimate Nick's capabilities!
CD, since when do CGP owe $60m in the "near future"? I thought we'd put this straightforward concept to bed! They do not start paying their debt to SOLG back until production.
DBW, as I said yesterday, I think it's a distinct possibility that they will drag the PFS out for much longer now. Why? Because without a PFS, CGP can't even start serious discussions with would-be financiers. If NM pushes the PFS right back, he can even can it by saying they're only 6 months off the BFS anyway - by doing so he can put maximum pressure on CGP. Imagine the scenario in which NM has lined up the full conditional financing pre-BFS. He releases the BFS with all conditions met, and the FID is made the following week; CGP then have only 90 days in which to sort their own share of the financing or be bought out for $3.5m. In that situation, there is zero chance that CGP will be able to avoid being smeltered into couple of Canadian gold coins.
To those who say NM is ready to take his millions and take up gardening in Australia, I say not a chance. You do realise they've just made a major find at Porvenir, and are quite likely going to be making a number more in the coming months/years. It's an explorer's dream come true, and NM it s true explorer. There is so much additional value to unlock here that it's hard to believe. NM stumbled ahead of himself in the Diggers presentation when he got to the Porvenir slides - quite unusual to see him getting carrie away. They are seriously excited about what's coming up here, and so should we be. Once they're a little more certain about what they've got at Porvenir, I doubt NM is going to consider offers of anything less than £2/share.
rcgl - liked your 21:30. I would add that it's all good publicity for Alpala/SOLG and they're helping us for free!
I'm not the intelligence/stupid argument works when you are desperate for an exit and pay day especially when faced with a huge dilution round awaiting pre DFS.
Tony Blair is not stupid and he didn't blink when he lied to the nation and decalred war on Iraq.
I think this is more a case of people wanting to believe whatever suits their end of the argument. The 'grey' areas are likely to be Irwin's and co's best chance and even then they are fighting a losing battle.
They should have taken the SOLG deal especially with recent Porvenir strike. Now they are faced with weeks or months of torrid times whereby SOLG prove up their 100% assets and build market cap value while CGP shares likely stagnant and even begin to fall.
What I would really like Irwin to do is stop challenging the 'text' in RNS's and instead start asking the CGP Board for their plan, strategy and provide evidence of finance talks for the $60m required in near future followed by the remaining $290m to fund share of Alpala.
I find it remarkable that CGP appear to have done nothing in terms of protecting their shareholders. Not one RNS that I can see talks about their impending funding requirements for Alpala. Surely TSX rules require them to start to prove they have a viable business as in a few months time they could bankrupt.
It's reckless to simply sit back and rely on an asset sale which may not come in time for them.
Time for CGP to stop ranting and instead prove they are capable of owning and sharing the costs on Alpala based on their 15%.
kev,well done on your investments in your sipp
What did I miss?
Maybe they will drag the PFS out way longer than we think . In November they could well still be saying 2-3 weeks, which isn’t necessarily a bad thing whilst all the while they are proving up other targets. In this case the inevitable delays caused by Covid may well play into their hands much to the frustration of CGP ....., shame :)
Roger im not buying that Irwin is stupid, an arrogant nob who didn't see the way this will pan out maybe however a decent pfs will surely give him a few more options to out?
Some people have thrown in the age thing with NM supposed selling up.
I would argue the opposite, he is in the age of legacy and a Solgold major will be his pride, joy and accomplishment, even when he retires.
Further, I reckon the people of Ecuador do mean a great deal to him now. You do not work in a place for years with the locals without it affecting you.
Nick Mather has to keep talking about going to production, until he gets the right price. Otherwise he would be stalemated if he said he was just a seller. I think he would prefer to cash out for a very large sum at his age and after the sweat he has put into Solgold. But in the meantime he is acting consistently both with someone going to production and also someone who wants to sell out at the highest price. Every quality resource that he proves up de-risks investment for a major and will drive any price up to take it out. I think if he does not get the price he wants he will keep going towards production, whether Alpala first I don't know. But he will want a big price now as he has driven this process and believed in it for numerous years
I don't understand by the way why Quady says a "serious poster" will have at least one million pounds in shares. Does that mean someone without a sense of humour?
Wasn't born with class so hey ho!
Your heads gonna hurt the morning after kB.
How disgusting how nouveau riche. No class in what you're doing. Yawn yawn yawn
My post 14th September
Cmon GGP 3 years I've waited ...
Over 5 years with OMI which will follow suit soon. ...
Now SOLG please can I have the icing !!!!
I'm doing okay Jerry, got a good amount here, GGP has given me a fourfold rise and still holding, OMI is about to come good and another big holding there, Actually made a profit from Val but out now, INO I doubled my dough, RMS is a good prospect down the line and small gains on my other holdings.
Mock all you like
In May I posted my holdings when GGP was 8p and OMI was 3.4p ...
Think I was right, they are in my SIPP which I need to build big to have a good income for retirement and it going extremely well .... Thank the Lord !
Check my posting history !
I have 2.1m shares but luckily GGP and OMI have flew whereby OMI has given me the most profit which astounds me as SOLG was my major holding. Got into UFO 4 days ago and looking good there and hold substantially along with ALBA and BZT recently added.
I gave you a breakdown of my portfolio holdings long before the rises..
Don't be jealous
Zoros I expect the serious posters on here, have at least one million pounds in shares.