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Hi Stocky, the deal is signed, no backing out. They can be reduced to 0.5% of NSR, if the agreed money is paid back, by a certain date.
Cannot remember the details, but am sure, their is someone on this chat, that can. That's the good thing about this chatroom.
Hi Zoro,
These are just my wild theories.
CGP will have to consolidated by Solgold or a major regardless. If Nick makes the move to increase his bid, it in effect increase the valuation of Solgold as well.
The offtake agreements will be non-binding. So if the major acts quick enough, they can cancel this.
All this does I think, is to create time constraints for the majors to make a move to make the deal workable for them and hopefully a good deal for Solgolders. And if they don't want it, then Nick will continue as planned, to production.
Also can somebody explain Solgold's option with Franco "to buy-back 50% of the NSR for a period of time"? Does this mean Solgold (or the new owner) can minimise royalties by backing out of the deal early but for a fee?
The fact this is in Ecuador is the very reason this is such an exciting prospect. How often do you get the chance to invest early doors in a smaller company that is in pole position to exploit an essentially untouched market, i.e. mining in Ecuador. There's so much more potential upside than investing in established global players who are dominating already well tapped markets and countries.
An annoying change in markets over the last few years has been private money increasingly getting in early on exciting companies which only come to the public markets later and later in their lifecycles, largely as a payday for those early private investors. The opportunities to get in on the ground floor of companies with big potential in new markets become more limited for ordinary PIs like us. This to me is a decent opportunity with big upside potential for fairly limited downside risk.
It’s a bit like ‘no deal is better than a bad deal’.....
Stocky the concern I have is this:
NM's latest conversations with the media suggests he is progressing talks with FNV for (atleast) $1Bn (hopefully and eventually for the remainder as well).
Now this cannot sit well with NCM or BHP, because if the FNV deal is ratified, any future buyer of solg OR JV with solg will have this 'complexity' bolted onto it. Throwing in the CGP debacle, just makes it even messier.
So I am wondering how BHP/NCM are going to play it.....come the 15th.
Z
If I was Nick, I would not wait for BHP to do something on the 15th Oct. Any one else care to punt on Nick's next steps? I would have to place a bet that Nick will announce the results on the finalisation of offtake agreements and an increase of Cornerstone bid. I will also place a side bet that he will announce a potential a Farm in agreement on any one of Solgold sites.
Like releasing drill results of new discoveries or pfs with larger resource and higher recovery rates....maybe something like $1billion worth of mine financing.
Just setting some expectations... I hope people don't expect fireworks on that magical date. BHP will have their own timing strategy. I'm just saying this so people don't over react and get disappointed if nothing happens within this year... But I do hope Nick will have some strategies of his own to invoke a reaction from the majors or financiers.
TBTT, it's the time difference. Canada is four days behind the rest of the World.
By NM's own admission in a recent webinar, you don't get the best price for something by being a distressed seller. In so many words he said that the only line he can play is: "we are taking this to production". Whether or not he intends it to go this way is entirely another question which has been debated on here until we are all dizzy from going in circles.
Quady, broadly speaking I happen to agree with you about the political situation, although I wouldn't go so far as to say it's a "high level functioning democracy". It's better than some but still has problems.
The key here is economic imperative; it has no choice other than to support the industry. It has very little else to offer and is in a dire situation. Self-preservation will dictate the outcome and we're here to help!
Hi Pinot Noir!
Thanks for the source. 15th October it is.
Why do Cornerstone keep getting the date wrong by four days?
Q whilst I applaud Nm’s “this is going to production “ stance ( as it would be crazy not tho talks this position) and I accept this could happen , there is no scenario I can see where BHP simply sit on their hands and allow this to happen ..... at the very least I expect them to Want a greatly increased stake and I’ll wager that won’t fully satisfy them
Schlemiel, why are you invested? Surely if you think Solgold is lying about taking this to production, and that Ecuador is a banana Republic, that's going to rob, every company that invests in the country. You would have to be nuts, to hold shares in Solgold, and then say I am invested for a takeover. If BHP said, hold on chaps, this Ecuador government is risky. Why would anyone bid. I cannot believe you would invest under your own criteria.
"fly-by-night investors" ha, ha, ha!
The company will be happy to wait for value through mine development even if some fly by night investors don't.
Schlemiel, I am guessing, I have done more research, on the government system in Ecuador than most. Ecuador, is and has been for some time, a high level functioning democracy. It has two parties, that are in close contention for February 2021 election. Moreno is the incumbent, that has brought in the present mining reforms. The opposition, have not declared s position on mining, but are to the right of Moreno's government, and hold a pro investment and are pro business growth, for Ecuador. please tell me, what bit, I am not understanding, and I will do my best, to give you a full answer.
Get it into your head schlemiel..this will developed solo by Solg unless there us a great offer or other agreement. Its good enough for Franco Nevada, so forget banging your drum how risky Ecuador is etc. The finance package is not a myth. Serious misinformation going on here or other intent!
The source is the standalone agreement.
SOLG's based in Ecuador and with that comes the hefty risk burden of being in a country whose laws can terrify international investors. Quady fails to understand this simple risk burden that dogs SOLG's market rating. At the risk of tedious repetition, sub-market value will only be achieved when SOLG is sold to the highest bidder
Morning all....here you go TigerByTheTail
https://www.lse.co.uk/rns/SOLG/bhp-to-invest-a-further-us22m-in-solgold-up3j8gpnwrvjmkm.html
Pinot
:0)
Source?
October 15th is correct.
Why Scoutt, would BHP bid for Solgold, when no-one else had, what's changed. We can defend against low bids, so if BHP, was going to bid at near to or full value, it would have been agreed, long before now.
Minor quibble...
Why does everybody here keep writing that BHP are free from their standstill on October 15th?
Cornerstone keep stating in public (over and over) that the date is October 19th.
Which date is right?