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My two cents:
- Parties in the data room like what they see - who wouldn't. It's a massive deposit with a great mix of metals
- However, the current plan requires a not inconsiderable outlay upfront
- On top of this, the political situation in Ecuador is shaky
- And SOLG is renegotiating the IPA with the current gov't which will include a write down on the exploration capital to be spent at Cascabel before end '23 (there is no way we are going to hit the agreed figure, when I last tried to calculate the outstanding amount was approx. USD$145m)
- SOLG is also negotiating the exploitation agreement so that construction can start
- SOLG needs to find a site for tailings (thank you for this insight Shippy)
I imagine that the feedback from the interested parties was something along these lines (some of which has been all but confirmed by Shippy and DG1's conversations with Scott):
1) produce a plan that reduces the upfront capital before payback
2) find a site for the tailings
3) get the two agreements with the Ecuadorian gov't over the line
At which point - political situation permitting - SOLG becomes very, very buyable. The above will take a few more months.
OR Scott is attempting to do what his predecessors Mather and Cazzubbo failed to and flush out a bid from one of the majors able to take this on as-is. galapagos' post yesterday mentioned that producing a plan with lower capex and earlier payback opens up Alpala to smaller players - is that something that majors are willing to risk?
Two things, Red
1) chatter on a tiny message board doesn't change the SP. Bad management does.
2) you are quoting DG1 about the data room parties. Not confirmed by the company, so I'd use some seasoning here.
Once again, I know you are desperate for a sale, but it is more likely a major would partner with us than buy us. Offer to put up most of the cash for building the mine in exchange for most of the minerals extracted. Then cost solg out of the equation over next few years with increased spending demands we can't meet, so they get a cheap route to 100% of the concession.
Not what anyone here wants, but more likely than a cashed up buyer offering £1.5+bn for the lot out of the goodness of their hearts, which is what some seem to believe might happen (lol).
RK, read my first post in this thread - it contains the answer to your question.
Why on earth does anyone think SOLG needs to raise more money...
They aint going to build Alpala and the DFS is on indefinite hold...
They've been agressively cutting costs and...
SOLG is up for sale, hence "several parties with access to the data room..."
From15 May RNS:
"The Company ended the quarter with strong liquidity, a cash balance of $48.1M, plus $25.4M shares held, which can be sold at the election of a wholly owned subsidiary...."
and:
"With the ongoing restructuring efforts described below, management expects current cash balances to last beyond June 2024. "
So much hot air wasted on here in idle speculation that might damage the SP...
You may be interested to know. I also hold ipx. held for 5 months. went up 70% today. unlike the mr man, not enough to retire. but I just thought I would share my excellent news with rk and fort.only made the discovery a few months
ago. good management, good strategy, good decisions. = massive, massive profit. have fun waiting for solg to emulate it. toodle pip
Ship, I get the feeling they're looking to raise a fairly significant amount - the CGP shares wouldn't raise enough.
E.T you're right, it would dilute us.
Alternatives?
A bond issue. Effectively it would be junk status and hugely expensive - 12/13%? Or perhaps even more.
In the good ol' days we could issue non-voting pref shares, either redeemable, non-redeemable or convertible. But these don't really exist anymore.
Straightforward debt? No chance.
Another royalty deal? That's been ruled out, although I wouldn't be that surprised to see us change our minds.
And then there's the equity market. Just think, we raise 100m and give away over 20% of the business.
None of the above are appealing. We need to sell the bloody thing!
Sell the shares we got from cornerstone
I m struggling to see how it wouldn't dilute us
We ether issue mor shares or we all donate a percentage of what we have ?
Is there another option ?
Does a JV dilute us by increasing the number of shares, add, or are you referring to the fact we'll be in line for less income from mining cascabel? Because 20% of billions is worth more than 100% of FA, last time I checked...
Q, one other thing: An off-take deal would not provide the up-front capital required for the mine development. At this stage it would merely be a letter of intent to purchase the ore once the mine is producing. I think you're referring to a royalty deal, which is hugely expensive and from memory, has already been ruled out.
Your preferred route of a jv would dilute us to a considerable degree and, to my mind, must be avoided.
Q, as I've just pointed out, selling a stake in ENSA necessarily implies dilution of our shareholding.
I should have added that when they refer to 'any other options' they clearly mean the complete sale of the group or Cascabel alone.
If avoiding dilution is a priority to the company, this is the only way forward that works for us small shareholders.
Good morning addicknt.
It's not contradictory at all.
No more fund raising through dilution to advance Cascabel.
So maybe an offtake or share of ENSA to start construction.
This means no DFS required at this stage.
Interpretation:
1. funding to be used to recommence our regional exploration programme. (our existing funds are to cover existing overheads only)
2. A funding package for the development of Cascabel appears not be under consideration. This contradicts the next point.
3. We will sell a stake in either the plc or ENSA. This must be for Cascabel development. Confusing, ain't it?
4. Point 3 means there will be significant dilution.
5. Given our other assets are pretty worthless at this stage, is the reference to 'other assets' Porv?
Wrong, you’ve muddled me up with someone else old boy!
Still holding
Unfortunately we have all come to expect Solgold deadlines to slip
I thought with your fine principles you would be a man of your word and bu88ered off.
Poor show old bean showing a total lack of class! Don’t think mother will be proud.
Ask your Matron for more/new medication. You need help.
Toodle pip.
"In order to fund the exploration and drilling activities of the Group thereafter (no mention of mine development), the Company is undertaking a strategic review to evaluate a wide range of financing and strategic options to secure funding, including, but not limited to, selling a direct or indirect stake in the Cascabel project, selling other assets of the Company, or any other transaction, which may, or may not, dilute existing shareholders.
The Board expects to recommend its future funding strategy in H1 2023 in connection with the Company's ongoing strategic review'.
No, but I’m sure it was all about first mover advantage…. Largest tenement holder…. Lots of ESG… Solg repeating how they are streamlining, making efficiencies… Strategic review underway… it’s going well… going biggly.. everything is so swell.
At this stage presentations are just window dressing to a room full of people that have already heard it all before. Everyone in the mining world is well aware of the Solgold story.
It’s just an exercise in keeping up appearances.
Anyone seen this presentation? Same old story?
Covgaz exactly my point
Oh dear Mrtit. Here we go again.
And you making up stories about retiring at 54, does what to enhance the board.? Yes nothing.
But it does in your small minded way make you feel superior. And you a complete fantasist, think you have the right to judge others.
👋 Bye!
NAL , he said he sent a twit. The twit may never get to meet Mr Musk , so the message may not actually get there.
So not only does sid share tweets with irwin. He know tweets with Elon musk. And 10 of you recommend his post.
Just how desperate are you people. Take the desperation for positive news on solg out of the equation. Think about sid and his posts, then think about some of the other fanciful claims you recommend. Then I suggest you look in a mirror, and ask yourselves, am I really that desperate to have to recommend these clowns. Now q you will be pleased to know. I'm off. Before I go insane