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Bozi,
Let’s assume the Canadian regulator is demanding the merger be completed in the way you suggest, and the cgp shares are cancelled. Surely Solg can just reprint those shares once the merger is complete and sell to whomever they originally intended… one would have to assume, they did originally have plans to use them in some way, as they were so specifically referred to as being loaned early in the proposal of the merger.
If they do sell them, I’d prefer they went to the Chinese… bringing in a 4th major would sound great, but could lead to a standoff between them all, that could last far longer than my waning patience..
To be fair StackHigh, RedKNight has been saying about increased volumes since 15/16p and now about 20% up so call it ramping if you want, consider he may have helped some buy at a decent price to either trade/ invest or whatever.
If you don't like it, filter him, at least he is providing quantitively data vs subjectively talking about someone.
I've made tidy profit trading in a short period and find his posts useful so please don't try and shame him to stop.
I think that's exactly what it is Add.
We all know what happened in the summer just gone because of all the 'debate' it prompted and I think you're exactly right. The Osisko money is to keep the Cascabel train moving forwards, or at least give the impression, whilst the strategic review plays out to it's conclusion.
Offered at 19.88 and I'm firmly bid for 600k at 19.72...
Break 20p and the next target is 23/24...
Who says theres not a bid coming...looking at the constant higher volumes and the SP march upwards from 16.32 on 25 November, something must be happening in the background...
Is rampy now just recycling his own ramps?!
Lots of people disagree on this board, and that's healthy, but this chap.... Wow
Bozi, a far more eloquent response than mine and you're spot-on.
Thinking about it, perhaps the Osisko money is being used to allow us to keep people on at Cascabel, thus avoiding the need for redundancies and the resultant unpopularity.
It won't Jezzoo.
SolGold have shown their capital management is lax and they shouldn't be trusted with a cash lump sum after farming out Cascabel.
It's the messiest solution and gives nobody a clean break. We'd be the minority partner and we'd be so heavy manipulated by the operating partner that it would be a hellish investment to hold.
Our capital requirements would be on their timeliness for example and as a junior generating no revenue but with a good sized regional portfolio to tend to, this spells disaster.
In case you missed my footnote at 10.45 yesterday...
"Finally, someone who I rare as an expert on Solgold is buying...right now.."
Some chunky OffBook deals going through this morning at the price...
I wonder if its my man buying...
Quady
We've taken $50m from Osisko because we couldn't get the cash anywhere else. An equity raised being pushed by BHP/NCM was presumably rejected by Mather and his cohort and that left us in stalemate, so in rode Bob Sangha and Maxit Capital and a deal was done with Maxit likely the key pawn.
With regards the money from the CGP stock, I don't think we know what is happening with that just yet. We've taken a similar amount from Jiangxi in the last week but no announcements have been made regarding regional drilling strategy so I'd express caution about suggesting a regional programme. I personally believe it more likely that CGP shareholders will be paid 20% of the merger consideration in cash once ratified and the CGP shares will be cancelled rather than sold, and I expect the Canadian regulator has insisted it be done this way. One of us will be right and one will be wrong.
The strategic review is not looking for cost savings at Alpala. That is what the PFS upgrade was doing and it has been shelved by our new interim CEO, no doubt after millions of dollars has been spent on it in the last 6-9 months.
I'm going to stop short of being rude because I think you get enough of that but there's an element of you seeing what you want to see too.
At the end of the day, Bob Sangha and Maxit are leading the strategic review. Bob Sangha is the driver behind Cornerstone. Bob and Cornerstone wants out and will likely stop at nothing until they get their exit.
That Quady does not lend itself to a JV. I'm sorry. It just doesn't.
You tell me why SolGold would dilute itself to acquire the remaining stake in Cascabel only to farm most of it back out and keep everyone locked in for another 5-10years? It makes no sense.
The correct strategy here is to spin off the regionals in a vehicle that's ready to list from the getgo and demerger FR SolGold. Sell SolGold to the highest bidder and then leave CGP, Bob, Warren Irwin, Redknight and anyone else who doesn't want to play the spin off Co to sell their distributed shares as they please.
It means me, you and anyone who wants to play the regional portfolio can do so and we all get a payoff for the years of holding SolGold. Win win win win win.
But this story of pushing Cascabel on is done. Stick a fork in it. That goose is cooked.
But it needs the right voting at this year's AGM to get over the final hurdle. Fall here and we might as well all jump into the fire and cook ourselves with it. No thanks.
Q, the royalty money is being used to address the issues you describe and I imagine the board believes they are value-adding, thus making the asset more desirable for a bidder.
The 36m is to advance porv and may suggest we really are looking at the rinse and repeat process. Of course, it's also being used to keep the lights on.
As DBW suggests, there have been many indications of what the plan is and, on balance, I believe he's right.
And no...I have nothing againt GGP investors, just posting a cautionary note re Solgold...
If you want to consider the risks of a J/V and the possible SP effects, just look at GGP, NCM and Havieron...
November 2020:
"Newcrest and Greatland sign new landmark agreements to facilitate the acceleration of early works and expanded exploration activities at Havieron"
SP rises from 21p and tops out at 37.35
SP drifts all the way down to 15.6 in October 2021
7 October 2021 PFS Results and SP spikes to 15.6
Recommences its drift down to 9.3 in July 2022
19 August 2022:
"Further to Greatland's announcement of 21 July 2022, Greatland is pleased to advise that Newcrest has elected not to exercise the option under the Havieron JV agreement to acquire an additional 5% interest in the JV from Greatland"
SP now stands at 7.5p...80% below its peak...and investors are still waiting for the crock of gold...
Be careful what you wish for...
Q try not to sound so condescending
It’s many things that tend me towards that point of view.
The fact that they have always stated production was the aim ( not that most believed it) and are now having a strategic review .
The fact that we are merging with a company whose stated preference has always been to sell Cascabel.
The fact that we are reducing staff numbers and not replacing key employees.
To name but a few …. Hey I could be wrong but that’s my take on things
Jezzoo do the math.
Work out our NPV on Alpala alone.
Look at the cost to bring to partial production, so we generate funds to complete a full block cave production mine, when the cost of extraction is even lower.
Look how much this can be funded through offtake, loans and a JV agreement.
We would have minimal dilution.
DBW what signs tell you its a takeover, are you on about Twitter.
Really is that it?
How will a JV work for SOLG ?
Surely we will be very much the poor relation in a JV, we can't afford to be the majority share holder, and any partner wouldn't entertain being a minority. We would have to stick to the timelines decided by the major holder.
Our priority would be their option. Not much value in a JV for existing SH IMHO.
Hey guys you may be right and it would lead to greater returns in the longer term if the can fund it.
Just can’t see it myself …. All the signs tell me it’s a takeover
Good morning Copperpot, that is what I think they are looking at, it accords with the statement that we are going to look at faster extraction in the early years.
With regards my 09.36 post......with open pit first!
I don't think some on here have been reading what is happening.
They are ignoring what doesn't accord with their worldview, and looking at the flimsy statement's that supports their desire to be taken out.
Please someone answer the following questions.
We know we have raised 50 million that is ring fenced and can only be spent on Cascabel. Why have we done that?
We know we are taking 36 million from the CGP deal to advance our regional drilling program.
Why have we done that ?
We know the strategic review is looking at a JV partner and looking for cost savings at Alpala.
Including looking at hydroelectric and an even faster extraction in the early years.
Why are we doing that?
This for me all points to a JV, otherwise why do these things.
Also the company has said it's looking for a JV which has been a step change since the announcement of the CGP deal.
And yet people are still talking about a bid.
I don't know why any of you read updates on Solgold, and then twist them so badly, that you pretend you know what you are talking about, when people have been shouting for nine years a takeover is imminent.
It's the same bunch.
Why can't they see it.
Don’t always agree with your posts Bozi but your observation below is spot on! It is VITAL that PI’s cast their vote in support of the BOD at the forthcoming AGM otherwise there is a very real risk of BHP & NCM getting control of the Board which would spell the end of any hope PI’s have of getting a fair value for their investment in Solg. So come on everyone “Let’s be having Yer” get onto your Broker now (don’t delay) and cast your votes in support of the motions put forward by our board at the AGM on Dec 22nd
Morning DBW, I honestly do think Solg will take this production (along with CGP now). I think it will be with multiple partners. I think there will also be many exits points along that road to production, as stated by NM and others. Big news could be pre AGM, but I think it will be mid/late Q1 2023.
My problem with RK is that he is impatient for a quick buck and is trying to condition others that things are imminent, they might be, they may not be? He can't wait for news and tries to build a bit of a rush factor into things.
People have been saying for years that a sale is imminent.......well you could have fooled me!
Copperpot - I'd say this is one of a limited list of factual statements from Redknight lately.
If the current board don't get re-elected at AGM you can bet your last euro that BHP and NCM will then nominate directors to the board in an attempt to control who SolGold goes on to appoint in Nick's, Twigger's and Clare's places.
If we think the beauracracy and infighting to date has been exhaustive then what comes next will need preparing for.
You can safely forget any notion of production and all possibility of a sale at anything like a fair price as the new board raises cheap equity to buy back what they can of the FNV and Osisko royalty deals.
SolGold's share price will be consigned back to single figures only this time there will be no catalysts for growth like there was back in 2016/2017/2018.
Copperpot
Be fair … you wrote not so long ago
“Production will happen with Solgold holding the reins….some people just can’t, and won’t see it”
How is that any different?
Wrong copperpot,
E=MC2 mate
Atb