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And equity raise at deliberately depressed share price.
Sounds like a poor idea to me
I feel an rns coming by shortly.
Bozi,
"but you would get the opportunity to maintain your % stake"... I think that's a valid point but doesn't apply to all shareholders and suits the ones with deep pockets or who sold out weeks ago in expectation of an equity raise.
The royalty deal / stream is the best way forwards when looking to raise $100m or more. Who cares what a major does in the future if we have an offer of 75p or 100p a share?? Yes the royalty might be taken into account but you're talking nothing more than 5p or so. Would I prefer $100m raised at 18p vs nothing raised and a stream deal of $100m but instead of a bid offer of 80p, we get 75p?? Ermmm... that's a no brainer.
What you fail to explain is what the effect of the $100m equity dilution would have on all shareholders? Say you 2.2bln shares in issue and the offer is 2.2bln... that's £1 per share. Now say we do 15% dilution at 18p raising around $100m... shares in issue jumps to over 2.5bln. If offer comes in at £2.2bln then that's 88p.
So that's why dilution is the devil!!! And that's why Mather and others want to avoid it. The royalty deal suits the little guy and not the majors. That's the point and the reason we are currently in limbo or discussions about finance structures.
She resigned...
Eish - I'm not sure why so much apprehension about an equity raise. I it's part and parcel of investing in a non-revenue generating resource junior.
Don't get me wrong, the share price and market conditions now aren't conducive to a fair deal for existing shareholders, but you would get the opportunity to maintain your % stake.
SeanHunter has been guilty of saying that dilution is the devil. Take no notice of that claptrap. Dilution is a necessity for a company in our position.
Besides, if SOLG went out and did another streaming deal, any bidder would take that finance into account when making an offer for the company because they have to pay that debt back, so it only ends up being dilution to your equity, albeit in a slightly different way.
The upside story is clear - see my post from yesterday - and the most important thing here and now is for SOLG to secure themselves enough cash to get through to DFS.
Thanks Bozi, that does make the most sense and hope one way or another they get it done.
Just not an equity raise to dilute us further. Would prefer other options. Wonder if a threatening streaming deal behind the curtains is causing a major problem here for us?
Eish - when the company secures finance.
As things stand we're edging towards insolvency and a breakthrough is needed in the apparent stalemate between our major shareholders.
Come on SOLG. Get it done.
Ship, I don't see how they could communicate any more than they do and be within the restraints of sensitive and non sensitive info. Generally I am happy with the level of comms. Any more and surely the price would fall even further. Be resigned to the fact that the current world issues will have added another 18 months minimum to any positive out come, now get back to your glue sniffing, I find that a big chunky Pritt stick does the job ;))
To get a comment from the company?
Is it time to form a shareholders association? That would give us small holders more clout.
Just wondering what will be required and when this will turn? We have seen sp fall with relatively good news in the past.
Scary that precious metals seem out of favour at the moment. Both gold and silver may reach rock bottom prices and US Dollar remains incredibly strong.
Cheers Sean.
Good luck Ray, my LLOY shares are in the doldrums but I've got to find some cash to add here myself. This price is madness.
Give David a tick up only time he gets any when talking about me lol
Missed the Blue Bell, but the House was on my list. Even the Wetherspoons has a beautiful view of a millhouse on the Foss with swans swimming by. I'm a fan for life now I've got to say, absolutely beautiful place with lovely people.
Still talking to yourself, I see Massive
You can get help for that.
To be fair I did say I'd buy back in the teens.
Yep why I've taken a punt
:)
Often take a train to York (from Durham) for a pub crawl when I can get a cheap fare, my Senior Railcard helps!. Too many great pubs to mention, but a couple I always visit are The Blue Bell on Fossgate just around the corner from where you were and The House of Trembling Madness on Stonegate. It's a first floor bar accessed through the beer shop near Ye Olde Starre Inn - not so 'olde' now unfortunately!
That area is full of 300-500 year old pubs.
It's very relaxing when you feel surrounded by history.
Love York, lived in the area until I was nearly 30.
Jazzoo I'm in the Golden Fleece right now and it feels like home.
Sean, that smacks for extreme negativity, mate. We are worth far more than 40p. 21mil Oz of Au for a start to help pay off a mine in quick time! It's a little hurdle over the life of a 50 year mine. There is still a lot more to be discovered on the Cascabel/Alpala site. Let's be a bit more positive! We're Tier ONE, not many such deposits around!
seanhunter:
My home county, and yes York is a great city, more than 2000 yrs of history.
I'm pleased you like it.
DBW another 400k, RK must have added, I've added another 150k over the last week or two, father-in-law the same... same faces on here over the years who hold faith.... Surely we could add another % or 2 to Nicks consortium if he wants to loop is into the grand plan :)
You may never see 40p again mate. At least not in our lifetimes.
Better be "GOOD NEWS" Bubble and DBW! Trouble is that PM's and in fact all shares are under the quash at the moment and probably heading south! We need that funding to be secure, most important. Obviously a Bid would be nice (as a starter)!