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Nick Mather is either a Private Investor or a Director...he is not an institution...yet...
And where do you get off slanging off someone about whom you know nothing...such as I wrote the first computerised Strategic Planning models in the Financial Services sector...I wont trouble you with the rest as you didn't read it the first time.
What are your market credentials?
I ran Fx and options for major AA/AAA banks for 15 years?
rouge knight, the institutional investor was himself... go check out the RNS and have a look at that fact. Who else has even turned up on the TR1? And it seems like you are taking every word literally that SOLG puts out and can copy and paste. I'm pretty sure you have never modelled a company either. Do you think, if that was the case, why every single analyst that covers SOLG has not increased their share price to match an evaluation equivalent to $3bn? LOL... Because that is not how you value a company... and nor does the market. You might need to go back to night school and learn how to evaluate a company.. doing a pretty crappy job so far.
Briefly - whomever buys CGP (if they do as a going concern) they would take on those obligations re what's owed up to DFS if indeed the DFS is completed.
Just imagine if the DFS isnt completed and a purchase for SOLG is made prior to completion.
TBTT - Agree 100% cash offers far more desirable!!!
NCM are in with CGP on another separate venture and I'm sure Warren Irwin & NCM will have talked re strategies.
NCM couldn't do this alone would need another major on board BHP are the obvious as they're in the frame, but that's not to say another party couldn't join the fray _+ it's not to say BHP want another on board - they may want the job lot!
Truth is we don't know and can only watch things unfold............v interesting & will get more so I guess if SOLG make further discoveries in the meantime! Fingers crossed on that front!!!
Quady ,and who are cornerstone in partnership aswell in Ecudor? ?,tick tock tick tock
IMO, the details don't really matter.
An offer for Cornerstone made in Solgold shares is not the equivalent of a cash offer from another party. Cash will always be preferable to fairly illiquid paper.
And Solgold certainly don't have the cash to rival a major's offer.
The only way Solgold get to buy Cornerstone's stake in Alpala + their SOLG shares is if no other bidders come forward.
I'm fairly sure that's not how this will play out.
What odds an early DFS puts spanner in someone’s plan?
ssmith...every now and then you throw out an opinion as fact, when it is completely wrong...
"Colonel, as I have said many times before on a DCF, today this is not worth $3bn..."
The Franco Nevada deal is at an equivalent of $3 billion...do you read anything the company puts out...?
"The raise wasn't done well. NO other institutional institutional investor got involved...."
“The Board of Directors of SolGold (LSE & TSX:SOLG) is pleased to announce a proposed fundraising (the "Fundraising") to raise minimum gross proceeds of approximately £16 million (approximately US$20 million)...”
“A total of 121,359,680 New Ordinary Shares in the capital of the Company ("Placing Shares") have been placed with new and existing investors...”
“The Placing and the Subscription raised gross proceeds of approximately £26.1 million for the Company (approximately US$32.6 million)...”
“In addition to the Placing, Subscription and the Retail Offer, the Company remains in dialogue with a potential investor for an additional subscription of up to US$5 million at the Placing Price....”
“The Board of Directors of SolGold (LSE & TSX:SOLG) is pleased to announce further to the results of the Placing, Subscriptions and Public Offer on 5 June 2020, certain INSTITUTIONAL and private investors have irrevocably agreed to subscribe for a further 21,440,186 New Ordinary Shares at the Placing Price...”
“the recently completed equity raising of US$40 million...”
So...the original proposal was $20 million but $40 million was raised...
There undoubtedly WERE institutional investors involved...do you think ALL that money came from private investors...? And any new institution doesn't have to declare until a threshold is crossed...
Please think before you post...
Good afternoon BNC, that's my point, DFS is close, so if we bid, then we meet the funding as we have paid for it. If say BHP bid, then they need to cough up at DFS, so shouldn't the Solgold offer take this into account. However if the bid is for Cornerstone in its entirety, as NM has recently said, then I suppose, it doesn't matter.
Yes Quady - if you buy CGP you get the lot.........
obviously SOLG wont be a cash buyer as we know - they'd offer a shares in SOLG deal......which he's already put out there previously as you mention ;o]
Thank you TBTT, as like yourself, I am unsure, however what I believe, is NM is apparently bidding for Cornerstone as a whole, and issues Solgold shares for the company, picking up ENSA and the Solgold shares.
that's very true indeed - very valid point.
that's only relevant on completion of the DFS (the purchase of CGP for $3mil - if they dont pay their share)
if someone or some parties were to make an offer for CGP, SLOG would be given the chance to counter offer based on right of first refusal......
I don't know the exact legal terms of the arrangement between Cornerstone and Solgold. That's probably inside information.
But my guess is that Solgold would need to match the terms of any potential offer - both for the 15% of Alpala and the Solgold shares. That would be typical.
Solgold just don't have the money to compete against a serious bid from a major. It's not even close. IMO, the first refusal condition is an empty formality.
Good afternoon TigerByTheTail, I am always unclear on this, but with first refusal, can Solgold match the bid, and deduct the share Cornerstone, is required to pay up, as whoever buys the ENSA part, surely they would need to cough up in the near future.
Hi Broke Novice!
First refusal really means very little in this case.
Say a predator offers £100m for Cornerstone's stake in Alpala and its SOLG shares? (I.e. Roughly 1.5 times CGP's current mcap).
How on earth are SOLG going to match that? They just don't have the money.
Sorry ssmith_trader, you say that we would have priced 80% of the value in, if this had been worth 3 billion. Let me remind you, we are at the PEA stage.
PEA= 10% of value
PFS= 30-40% of value
DFS= around 50% of value.
Rough figures, but pretty accurate, we are above 10% of value of 4.4 billion dollars NAV, which is the figure we should be using.
interesting stuff & v logical, just for info, SOLG have first refusal re Cornerstone.
whats happening tomorrow?
also for info, SOLG has first refusal regarding any purchase of CGP!
Colonel, as I have said many times before on a DCF, today this is not worth $3bn, otherwise the market would have priced 80% of the value in already. It could be worth $3bn eventually given time. And of course this is when you get predators, when they do have the advantage of time and looking much further ahead because they have deep pocket and expertise. Two things that NM does not (he is not producer and one hire from NCM does not make the team that he needs). We can all agree this is way lower price wise than what it should be currently be priced at. I blame NM for that. I will of course take advantage of that, as and when I see price action dictate a change.. as I saw today. Tomorrow will be very telling. If NCM buy CGP' stake and then cooperate with BHP, then SOLG will not be taken out for much more than 80p (I'd expect a range between 50p-80p that is similar to a few brokers valuation of SOLG today). I can't see how NM can block that takeover. Can you?
Having floated the idea of a NC / BHP joint bid for SOLG today, it does occur to me that another scenario may be possible. That is:
Newcrest have withdrawn their director from SOLG as they have received an indicative bid for their shareholding (at a satisfactory price) from another major (possibly Barrick, but not certainly).
Whatever is going on behind the scenes, the first thing any potential buyer of SOLG will want to do is to take out Cornerstone's 15% share of Alpala and their shares in Solgold. Putting that together with NC's shares would give the potential buyer the right launch pad for a bid. So that's the next piece of news if I'm reading this right.
Obviously, any outside bidder would be looking to reach terms with BHP as well. Nobody wants to get into a bidding war if it can be avoided.
Personally, I don't see how Solgold can defend themselves against a takeover, given where we are now. I suppose the best hope is some absolutely stunning drill results from one of the new targets. But the "game" will get away from them very quickly now, and I don't think any results can come in time.
the raise wasn't done well you say?
they raised far far more than they set out to
they offered pi's the opportunity to get involved again
they did not go to NCM & BHP as did not wish to give them more of a stake in the co (which NM has stated several times)
have you thought that for example, it might have been a favourable market to obtain/secure funding - when it may not be so easy in the future possibly - maybe citigroup advised to a) take advantage of the opportunity available, & b) bolster the share register more in favour of the SOLG/NM side
You seem to take a very 'present view' of the share price. You can't make assumptions based on small macro sp movements and then align it to the company's progress. The share price is just tool to get buyers and sellers exchanged. Deals can take place at 19p levels as per recently or at late 20's as seen recently. The share price is not really a benchmark to base the business or achievements on. The Franco deal is a better example. That's $100m in cash for just a tiny fraction of Alpala gold. That deal alone values the asset at near $3bln.
That's why NM did the deal because he's fed up with the lazy and poor market at delivering share price alignment to asset values.
They usually align when PFS arrived and get much much closer to each other when DFS arrives and in a few cases can get closers still when a buyer for the asset arrives.
Remember, Alpala is just once licence block proven up. And that's $3bln+ (and still discounted). And then there's the other 13 opportunities...
The share price is largely irrelevant at these levels and only becomes something worthy of business/asset valuation when it nudges up to 45p again.
BNC that's my point. It will take time for the drilling results to come back. I'm not sure he has time on his side, to keep SOLG under his control. NM is obviously talking his own book when he says NCM and BHP were not offered. More likely they refused to. The raise wasn't done well. NO other institutional institutional investor got involved. The only one we know of (and were eagerly waiting to hear from) was NM himself, through his own company. Was there others? I was definitely expecting someone else besides his own holding company to the 'institutional' investor. Ben saying for a while.. NM has to go. The last few webinars was to ramp the stock up. He got asked many times as to whether their would be a need for another raise and he said no at all those times. Not cricket in my book...
how can they deliver drill results when the country has only just begun to open and SLOG have as soon as poss, started to mobilise drilling rigs to various locations! I dont expect anything re drill results for at least 1 month from now and possibly longer......it takes time to drill and then time to release resulting assays............
NCM & BHP were not offered to take part in the last fund raise - NM did not want to issue them any more equity than they already have - which I'm sure he has explained several times in recent interviews - I've heard it at least twice
Not sure how you can make a big bold statement like that and say that NM has outplayed NCM... just look at the share price of SOLG. It's also not as if NM has come back with more positive drilling results. If anything, NCM have played it well. They didn't take part in the placing (unlike a few shareholders here) and the share price is STILL lower than 21.5... and if true they'll be getting a bigger shareholding through Cornerstone and be able to stick it to NM.