Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This must be the bottom price we will ever get or the Chinese would have not invested, so I topped up.
GLA
2luke …. They incidentally own Valuestone as well
Does Jiangxi copper fully own any mines outside China?
DBW, I think keep an open mind on what's on the table or off the table post merger deal. Much has changed and whilst I agree Nick has mentioned that JV deal not preferred, the reality is... SOLG and Nick have said many things and then done the opposite. So I wouldn't dismiss it.
I think we are at the beginning of seeing those in the shadows moving into the open space now. We've had Mitsui mentioned and their interest 'outed'. We had 'Valuestone' a couple of years ago suggesting Chinese interest but today we have that interest confirmed by the mother ship and not through Valuestone... suggesting that they are happy to be showing their interest now. Mmm!
We've had Boliden, Franco and Osisko mentioned or involved for royalty deals.
After many years of cat and mouse, we now have names entering the ring. Some may be interested in JV's or bidding for part or whole of company and some might not be interested in that at all... they just want a slice of cheap equity ahead of a predicted sale.
For me, the timelines leading up to the AGM are of key interest as that's going to determine how tight the voting is. My question is a simple one... what happens if TSX regulatory requirements delay merger till early 2023?? That means BHP et al go into the AGM with same if not more influence than they had last year as they haven't been diluted yet.
What's the minimum notification date for CGP to get the EGM announced and done?? 14 days? Or 21 days?
I'm still at a loss how SOLG can issue 155m shares to one entity unless they are loaned or connected with the CGP shares?
As per usual with SOLG... more questions than answers come with every RNS they issue.
2Luke, the Chinese can have the lot. We most certainly don't want to be the weaker partner in a jv with them. Anyway, it ain't gonna happen.
He doesn’t like it, I would much prefer to t/o as well. But if a t/o doesn’t eventuate, this is what it’s going to be.
You should check out the 50:50 Zijin Mining did with Ivanhoe for the Kampala Kakula project. It is not the only example of 50:50 success with the Chinese. I have been seeing several such success stories, and they arise primarily for one reason. The Chinese are willing to take jurisdictional risks western entities won’t, or won’t pay a lot for. And country risk is a real thing in Ecuador. That accounts for a lot of reticence on BHPs part.
Nick has said many times he doesn’t like the idea of a JV
It reduces T/O premium
Got a feeling he may walk away with a few extraneous licenses when the dust settles:)
DBW, I sincerely hope you're right - I really don't like the idea of a jv. And yes, it's good to see BHP being put on the back foot.
Morning Add
No JV happening here. BHP will be spitting but they still have a few days before the deal is done and the streaming is complete. They really have been played and I’m sure a bidding war ( they can’t afford to lose) with the Chinese isn’t their preferred path …. Karma is a wonderful thing
50:50 jv. A recipe for absolute disaster. They always are and always end in tears. If I were you I'd forget about that idea altogether.
Agreed - I can't see how SOLG can issue 155m shares without breaking pre-emption rights.
Deal is expected to close on Dec 9th so that's before the AGM and any approvals on resolutions.
A puzzle indeed.
copperpot, you have 2m shares invested at 4.6p. Meaning if the company was sold for 46p, you would make £828,000. That number is more than reachable. Perhaps you are a multi, multi millionaire, in which case fair enough - but for most that type of return would be pretty life changing.
I’d rather 90% if it’s a JV
No problem, Sire_Frugalman.
Can't read all the posts this morning as busy.
You made me doubt myself which is no bad thing.
All the best.
Solgold seem to be raising capital both for Cascabel and for exploration
How much could we get off a JV partner for say 50%
This would half construction costs and allow Citi to fund raise through loans if we have some capital to put down.
Quady please see my "apologies" thread already posted
Mistermiester
This is what I thought, that they might pick up the shares too even at a premium say 25p then that’s a pretty cheap 15 % or something holding and the largest shareholder
I hope they will be cancelled post merger.
So, Sire_Frugalman the shares are new shares as I said.
It appears I accepted your explanation to readily.
I thought I had read it correctly.
Don't pre-emption protections prevent the company from issuing so many shares to a single party?
"ToS...the CGP 157.1 million shares will be redeemed post merger...leaving only 23 million dilution..."
I think you'll find that Maxit are taking 2.1m as fees. But just a hunch. You'd think they would take the cash but I guess if you take the shares it's double bubble on a low ball scenario.
All speculation on my part but noses are in the trough and that's a good sign as it means a value enhancing transaction is not far away.
I have checked with Fawzi and response is as follows
“Thanks for your email. The 155m shares to Jiangxi Copper as announced today will be an issuance and are separate to the SOLG shares that Cornerstone holds.”
So the cornerstone shares may be used as a top up of shares, to who, is the question. if these were to be sold to Jiangxi also It would take their holding to nearly 13%. A bid precursor?
I think we can now safely state that Solg will not be mining in Ecuador as a solo enterprise. That profile has well and truly died.
All that remains to be discussed now is whether Solg will JV with a major or be sold.
And all the while, CGP will be in the driving seat together with NM.
A coup in the making - stealing the crown jewels right from under the noses of BHP and NCM.
Truth is stranger than fiction it seems.
My NY resolution for 2023 - get shot of Solg ASAP,
Z
ToS...the CGP 157.1 million shares will be redeemed post merger...leaving only 23 million dilution...