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“Don’t worry, you will be proven wrong. We will not be rolling over to BHP”
Irwins latest.. nice to have him able to comment again..
Good morning addicknt.
Maybe you are overthinking this and it may be a lot simpler.
BHP and NCM anti dilution rights end on the 27th October 2022 (I believe).
This event will happen after that date, so if BHP and NCM want to maintain their percentage of the market capitalisation of the company. Then I believe they must do this in the open market.
Maybe the recent decline in Solgolds share price is because an order is being filled for one or both.
This would explain why we have had a lot of activity off book.
Could it be this that BHP and NCM were unhappy about.
So why I have always said we will not get an offer until the diverse book changes, we now have a change.
I am however struggling to understand which way this has changed.
On one hand BHP and NCM have been diluted, and if they have been filling orders how successful have they been.
If they haven't been filling orders they remain diluted, and if they want to restore the status quo, then they can on the open market. (Good luck with that one)
So I do feel that a sale of ENSA is now a possibility, although still hard to achieve.
I however on the other hand recognise that the book is even more diverse as although the CGP buyout gives their shareholders just under 20% of the company, that this is not one shareholder and as such these shares cannot be acquired en block.
So no doubt many CGP shareholders will sell their Solgold shares when this goes through and again positions may be filled.
So I believe even more unlikely for a bid for Solgold as a whole, because the diverse book has become more diverse and makes a hostile bid all but impossible, and we still don't get a friendly bid because no one will offer the price required and they don't want the other unexplored tenements including Porvenir.
Now we come to the share capital that Solgold acquires in this deal.
We acquire a sizeable holding of Solgold shares in treasury.
These can be used for their voting rights and increase the BOD influence, or can be used to raise funds or cancelled.
I don't believe they will be cancelled as that would make the book less diverse, and I don't believe they will be used to raise funds at this stage as the chunk is sizeable.
So the most likely outcome in my mind is voting rights at this stage and maybe sold on the open market or en block when the price is higher.
So what happens now.
Well we wait and see do we get the updated PFS for Alpala and the PEA for Porvenir on time.
Does this move the share price and enable us to raise funds with treasury and no further dilution.
If this gets us to DFS, then the game changes again, because suddenly minimal dilution is a reality and we have a many options.
Interesting times.
Neither DGR nor NM has sufficient cash to take part in a sizeable fund raise. They are already being diluted by the merger and their influence will be further reduced by the placing of two new CGP board members, who I think we can assume will be looking for the exit door.
How likely is it that either party will be prepared to see further dilution? We will almost certainly need some extra cash simply to get us through the review period, but there must be a question mark over whether the company will seek a large enough sum to get us through to the end of next year i,e the production of the DFS. And even then that wouldn't be enough as we have a significant requirement for general working capital and exploration.
I understand why the company mentioned funding as one of the review options, but I'm struggling to see why it would be in any of the shareholders interests.
A disposal could take at least six months to complete, so some cash will be required just to keep the lights on, but would they really go for $100m now? It doesn't seem likely to me.
Yesterday was a very weird day. I can't think of any situation that I've seen where a company effectively puts itself up for sale, particularly one which is so undervalued, and the share price actually falls. What was in the minds of those afternoon sellers? I guess many of them will have been waiting for this day to come and yet when it does arrive, they bail out. How perverse is that?
Good point …. Talking of CGP Irwin latest tweet
“BHP in control? Check your numbers. Give me an example of a cheap takeover of a world class mineral deposit. Doesn’t happen”
Cornerstones Bramaderos project set to release MRE 4th qtr- could be nice pick up for Solgold
Irwin tweeted this earlier...he’s been vocal today about the merger . Nice to see him coming out of his shell...
“BHP in control? Check your numbers. Give me an example of a cheap takeover of a world class mineral deposit. Doesn’t happen.”
Thread- https://twitter.com/bigdude6669/status/1578260589037912064?s=21
(Apologies if already posted)
No...people will have been desperate to buy this morning after the Mitsui tweet...they may have looked at the RNS and immediately decided it was good news...pile in...don't miss out...
Then there's a hiatus...the autobots get going...the SP starts to drop and people think "was I overhasty?"
Then the fall accelerates and the FOMOs turn into FOLOs...the MMs hit stop losses...bang the price down further and suddenly you're 20% down from the days high, going into the weekend...
I'm more optimistic than I was even last night and have built us back to almost full capacity again..
Now let the party begin...this thing has serious legs...
Look at that after hours bargain of 775363 at 18.172...
Loads of people were selling this afternoon but someone(s) were buying...
Have a good weekend all and sleep easy...
Agreed
all the excitement on here and the share price drops over 2 %. Does the market know something we don't ?
from the RNS "The Transaction will require approval by two-thirds of the votes cast by the shareholders of Cornerstone and a majority of the votes cast by disinterested shareholders at a special meeting of Cornerstone shareholders expected to be held in the fourth quarter of 2022." END.
My guess is they'll want this sewn up pronto and if 'they' intend more news that needs a vote at AGM, then it needs to happen in next 3 to 4 weeks. I'd say they will go for 21days from next week.
"Upon closing of the Transaction, the SolGold board of directors will be comprised of up to ten individuals with Cornerstone entitled to nominate two directors." END
And based on the above, it would look like the BoD's 'balance' has been sorted with 'friendlies' in full control.
And doesn't look like they are in any rush to appoint a new CFO. Mmm... wonder why that is!
There's no way Irwin and CGP would sign up to this deal unless they had been assured by Mather that the end game is to get a great sale done. Whether ENSA or the entire lot... we will see.
how long this could take?
BHP......Mmmm
Really..........I'm interested Fort
I too think BHP is interested in................................>IT<
Lets not forget about the little teaser that was tweeted out yesterday afternoon and retweeted by Irwin. Mitsui around the table in Ecuador. Mmmm. Then today (with some haste I guess) we have the CGP merger deal announced. Again, Irwin clearly happy. So after all these quiet months and some type of gagging order on Mather and Irwin, it now seems the shackles are off and it's in everyones interests to SUPPORT Solg. SOLG are now the sole gravy train. It's the vehicle for making all those involved rich. It's because of this that I think Mather and Irwin have no intention of diluting further. No intention of doing any further exploration. I think all are now firmly concentrating on getting SOLG / Assets monetised. Long time coming but today was the beginning of the long awaited and overdue 'return on investment' for shareholders.
SOLG may never need to tap the market again. The strategic review might well confirm that farm outs, JV's and asset sales are the best way forwards. A change from the older style equity raises. At end of the day, what's the point in further dilution in raising $50m or so if you are hellbent on selling the main asset?? Mitsui add an interesting dynamic and I think we'll hear about how and when they get involved shortly. And don't worry about upsetting BHP and co.... I think that's clear now. It's put up or shut up. And if they want SOLG's assets then they will need to move fast otherwise this cake is going to be chopped up and served to someone else entirely. It's game on and in chess terms, It's BHP that have the clock running down, not SOLG.
Can you hear me Shippy ??
Don't go towards the light.................
I've filtered everyone apart from me now and I'm not even sure I'm not another incarnation of mavis
Bozi, maybe it's just me and although I get your concerns I'm feeling far more optimistic. I hope that optimism isn't misplaced.
Addicknt - compared with 24hrs ago? No. Why would I? Unless you're referring to the cuddly loveable Warren Irwin. How fantastic it will be to be cosied up with him, MacDonald and Sangha once again...
At the end of the day, we still have funding unresolved. I won't be comfortable until this is suitably addressed.
The strategic review should be interesting. It may or may not yield something of promise. That's what I'll be judging management on going forwards though - securing the right deals where necessary to progress the enlarged Solgold.
I'm not getting ahead of myself though because we've admitted we'll have to consider all our options. That comes more from a position of weakness as far as I'm concerned and I therefore still have reservations about where it might lead, even with the book still to be even more diverse...;-)
Hopefully...
Let's get the next few weeks out the way first though.
those of you who are now feeling considerably more relaxed about this investment compared to 24 hours ago.
At last we have some clarity and the next few months are going to be fascinating.
Mining. Com
https://www.mining.com/solgold-becomes-sole-owner-of-cascabel-with-cornerstone-buy/
Sean...
I have been here , since August 2013.
I think I'm a long holder surely by now.
Seen the ups, the downs..
Nothing new here, just got to try and catch a buck or two along the way.
?
Now that made me laugh Slug.
BOOOM JRP if that happens I'd even take tinyray out for a drink and feel sorry for the poor little person Lolzzz !!
WWTBOOTW ;))
just 65p?