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Thanks Quinty. Cornwall really is a great part of this country, excellent food, great beer, clear blue water, and good honest people who remain unfazed by the crap peddled by the media.
Great post BnC. It's all about control here - the drilling and the long term strategy are moot at this point in my opinion.
Exactly Quinty and this was NM's argument all the way..........
Just crunching some no's and reason for doing this is the clear objection to having NM on the bod - as it seems to remain widely reported........ + what was touched on re NM securing a seat on the bb via DGR Holdings moving up to 10%
So no's
SLOG Shares in issue 2.3bill
DGR hold 8.89% so would require 1.11% or circa 25.5m more shares to take them to 10%
If we use the 10% fund raise figs we discussed previously = 230m
If I'm not mistaken DGR would be entitled to 8.89% of this which is circa 20.5m
Leaving them only 5m short which could be bough on the open market with little disruption.........
I know there are a lot of assumptions in the above, but is this really the true issue?
BHP NCM CGP & allegedly B'ROCK want NM out of the way..................but he does not want to the the co given away death by equity dilution...........and neither do we as PI's one assumes (although some of the comments on here do make me wonder sometimes what some folks really do want)
So is this objection, really about stock holdings shareholding squabbles & the control of the bod / company???
I for one am sick of BHP and its cronies & their bully boy tactics - muscling in and trying to run our company...........if you want to take control the cough up and buy the damned thing and stop pi-ss-ing us about!
R's
BN.c
What % of shareholders must be against a proposed fundraise in order to be able to block it? Sorry I might be being dim. I am tired after 6.5 hours in the car on the way back from Cornwall today, and wading through the posts on this BB.
I just find it both strange and concerning that BHP and NCM can say we're not going to cough up any more money, but also say to SOLG you can't go and raise capital (via equity at least) elsewhere, when they own less than a third of the company between them.
I'd have bitten their hand off again given the opportunity & not for the tiny amount they offered us last minute dot.com in the last raise either............
Then again my holdings are miniscule in comparison lols..........
r's
bn.c
Is that accurate, Quinty? Are we in a situation whereby two majors that control 26% of our company are able to 1) refuse to participate in a fundraise and 2) prevent any fundraise that doesn't include them from taking place?
From here: https://www.afr.com/rear-window/s-all-not-well-at-solgold-20220814-p5b9p0
"BHP and Newcrest were apparently unwilling to invest again, and a second raising that would circumvent pre-emption rights was ultimately seen by shareholders as not appropriate. And fair enough, it’s a £600 million company, not a Perth-based penny stock explorer, though it’s only got about $25 million left in the bank."
So we now know that SOLG wanted to raise $50m but BHP and NCM said they didn't want to participate in the raise. We don't know why that might be. Whether the price we tried to raise at was too high, or whether BHP and NCM simply don't want to invest anymore capital into this project under this management.
Where I'm struggling is the second part of the above, why a raise that would circumvent pre-emption rights was seen as "not appropriate". Surely this presents existing shareholders an opportunity to dilute the holdings of the two majors who are clearly only interested in getting their hands on our assets as cheap as possible? Or would the optics of BHP and NCM not taking part be detrimental to the share price?
When this is all over - and I struggle to see how SOLG will exist in 2023 - it will be fascinating to hear the stories of those who have lived and worked through this on the inside, Mather, Marshall, Ward, Twigger, and most recently Ayten Saridas. I bet there are some great tales to be told.
...What has happened to the Swiss legal entity where NM, Ingo and one or two other SOLGers were directors, that was set up to provide the funding to the rest of the company?
Seems to have fallen off the radar, but if still in play might be relevant in the current situation.
Anyone?
Nice on Bublé
Hope ur ok m8y ;o]
[bit tiresome this lark innit?!?]
Be glad when it's all over!!!!
R's
BN.c
Chinese Friday BNC:):):)
Q, I seem to recall that you may have mentioned once or twice that you've been investing successfully for 400 years. How is it then that you have absolutely no idea how placings or fund raises in general work? Because it's abundantly clear you don't.
You've never worked in the capital markets and have never raised any money from them, and yet you come on here making statements with absolute conviction that you're right.
I wouldn't dream of making similar statements about being a technical analyst, or whatever it was you did, so why do you persist with yours about capital markets?
Anyone for a chinese?
addicknt the reason I sometimes doubt you were ever a CEO is you go off at a tangent and never back down.
A CEO has an open mind and no matter how many times they are wrong end up doing the right thing. You don't.
If their was a failed funding deal, what was it's terms. Should be easy for an ex CEO to find.
After all according to you it failed and so must have failed on the specifics.
The reason you won't find it, is it was just a conversation and no deal was put forward to fail.
You really show yourself up on occasions.
Quint I think the only reason we are still drilling Cascabel is because they believe it’s bigger … ie Moran and potentially others are directly connected?
It's forward looking stuff. Why would BHP and NCM want to be involved in a fund raise that see's SOLG move ever closer to doing a self finance deal? Yes, they will want to maintain % toe in the door but the truth is SOLG have outlined their plan A and that will involve a number for finance taps which include streaming/asset royalty deals. There's no other way SOLG can finance it. So what's the point of NCM and BHP playing along? In fact ... what's the point of all shareholders playing along? Yes there's another $1bln+ or so to add via DFS stages but that's based on SOLG PFS and any Major like BHP will rip that up and do their own.
I just can't see how you can get funding agreed with two entities like NCM and BHP who have a completely different direction planned.
It's like asking a debt collector for an interest free loan.
Farquin stupids.
It takes some beating but this came close
“Probably Orthern, if so he will show his true colours as he is so unintellent.”
Lololol if it’s true ( I have the idiot filtered ) by idiot I assume you know who I mean ?
"No deal was submitted, so it cannot have failed".
By some margin the daftest post of the day.
Look guys, lets get serious now or else sunstroke is going to be a factor.
Lets just assume that BHP and NCM are not happy with royalty tap aka Franco deal?? Happy with that?? Ok, if agreed that it is the one thing that BHP really don't like or NCM for that matter, then lets just fast forward this pantomime 12months+ and here we are keyboard warriors tapping away on the recent revelation that BHP are not happy with SOLG doing a $1bln royalty deal with Franco and $1bln with Boliden and $500m via CB's and $500m via equity placing.
Seriously... if BHP and NCM are 'throwing toys out of the pram' based on a pony 0.5% royalty deal, then what the tarquins are they going to say when it gets to proper funding time???
Has that penny dropped yet??
Hence this game has to end before 'Keiths' dose of reality really starts to kick in.
Get PFS2 sorted. get Porvenir PEA sorted then commence auction/bid process sale of ENSA or complete folio and business.
Granted I could ask what other board members have contributed too…. But the finance people have been shown the door… maybe/probably for underachieving, I can only speculate….. so how is Twigger still around?
Red, can you explain what Twigger does for us exactly? I genuinely have no idea what he contributes… what he has achieved over the last 3-4 years?
Id have him out in December
Evening Lunch :-).
Yesterday's Financial Review (oz) suggested that Solg is next in line for a buy-out............
Agreed, it would have taken a 5 minute phone call to BHP and NCm regarding royalty tap and to share thoughts on how they might be able to find a halfway house on the Franco style deal vs equity placing. Perhaps they went with $75m placing and $75m royalty tap and it got the nod only for someone at the last minute... prob BHP to say nope... we don't want to do that or it might have been Boliden saying... nope we are not going to allow a full buy back of the royalty and want to retain 0.5% no matter what. People forget that there are potentially 4 parties involved here, possible more. You have Franco, Boliden, BHP, NCM and Mathers crew... DGR, CGP and tenstar? The latter might not be included.
All want a slice of the cake... some want others to not have slice at all. Some want nothing to do with it. Some want it all.
At end of the day... it's fair for the CEO to say we 'tested' the market/shareholders and we didn't get a consensus. Call it failure or call it a reason to return to the table to discuss more options. No rush... there's a decent 4 months of cash left.
LunchMoney I accept the 10% figure that you put up, unsure why Solgold included this.
This is the annualized figure.
NCM and BHP can't vote against it if Solgold don't include it next year. Then the default is 20%.
I think the interesting point is NM.
As someone said if he was voted off as a NED.
He could do a deal between Tenstar, DGR and himself and get reappointed as a director under the 10% rule.
So I don't see NM going anywhere.
There is no capital markets experience whatsoever in DC's CV...
https://www.linkedin.com/in/darryl-cuzzubbo-850775b6/details/experience/
However, Twigger is still MD of PCF Capital Partners....
"Over 25 years’ experience in investment banking and corporate finance including the establishment of Macquarie Bank’s Bullion and Commodities division in Perth in 1995.
Previously Head of Macquarie Bank’s and then Bankers Trust’s investment banking in Western Australia.
As founder of PCF in 1999, Liam oversees all of PCF’s businesses and is actively involved in corporate finance and advisory mandates."
The truth is Quads that none of us know what's happening in the background (apart from a lot of P45's being issued!).
It does get my goat when it is suggested that Cuzzubbo is doing a hash of a job, when for all we know he could be setting up a fantastic sale, which will enrich us all.
Damers.
Damers stop believing the untruths here.
No deal was submitted, so it cannot have failed.
We had conversations on the structure of a deal and although not named, it was BHP and NCM that disagreed.
We don't know what the proposal was as we never went ahead. ( so no deal even attempted ).
We are currently putting together another structure and I will guess it will be something that doesn't require shareholder approval.
Let's see what happens.