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DBW you would make a terrible technical analyst.
You cannot read a basic statement.
They don't like the way the fund raise is going about.
Nothing has failed.
They don't like the fact that they are not part of the fund raise.
You have truncated the statements in the letter to try to change the meaning.
However you have failed .
Now try to redeem yourself a little and read the letter.
Dbw, I see that as our latest rns for a raise as the issue not a previously failed attempt.
As Quady has pointed out it looks as if Berry are unhappy with the structure of it?
Either way I think it needs clearing up officially.
"Company’s latest attempt to fund raise unfortunately only demonstrates the Management and the Board’s
lack of understanding of 1) their shareholder base and 2) the basic mechanics of capital markets"
Well there clearly was an attempt to raise .... we don't have the money..... conclusion .... it failed....couldn't be clearer
Ironically it may have accelerated this towards a long overdue conclusion
Seems to me like a half-hearted attempt to raise in the markets, i.e. designed to fail, whereby the only option left on the table is the one they really want; to issues millions of cheap shares to the major shareholders. Sorry guys, we had no other option...
Good grief addicknt read the letter.
No fund raising has failed.
No major shareholder is unhappy.
Only Berry Street capital is unhappy.
Read it and you realize it's the polar opposite of what you are saying.
Letter below:
28th July 2022
Statement re SolGold Plc
Berry Street Capital Management LLP has been an investor in SolGold Plc (“the Company”) since late
2020. We have subsequently added to our exposure through public market share purchases as well as
through the Company’s 2021 share offering.
As an investor in the Company, it has been very difficult to follow a great project being managed so poorly
at the corporate level both before, and after, the publication of the Pre-Feasibility Study. In our view, the
Company’s latest attempt to fund raise unfortunately only demonstrates the Management and the Board’s
lack of understanding of 1) their shareholder base and 2) the basic mechanics of capital markets.
We believe the Board should represent the entire shareholder base and not only a select group who might
be exercising control. Hence, we urge the Board to act fully independently and begin a strategic review
imminently to initiate a sale process of the Company.
BNC, you're right, it shouldn't have become a drama, particularly as we've known more money would be required from the day we completed the last one. As you say, such is the way with junior explorers.
However, it's quite obvious it's become a drama or, more specifically, a grave embarrassment.
It seems that we tried to go down a route which both failed as well as upsetting at least one of our institutional shareholders. This begs the questions, why did we go down that route - whatever it was and why did it fail? The other obvious question is why has the man responsible for our fund raising left the company a matter of hours before this all became public?
I would love to know where CGP stand on all this.
Point taken Add, but anyone willing to take solg knows they are taking on Bhp.
That has always been the double edged sword when dealing with a major.
Time to cough up Bhp
Quite right, on all counts, BNC. Most sensible post.
Excellent perspective, BNC!
As always....!
Wonder if there will be more news to come quite soon to give us a better idea of where we stand?
Good post BNC let's keep it factual.
SharketMare it doesn't say that.
Please point out where it says that. Either in the RNS or the Berry Street capital letter. It says the complete opposite.
SM, agreed - it was awful.
So Ingo leaving is interesting and could be read different ways...........
Moving on as his services are no longer required......... or a falling out and he's been "let go" shall we say
We dont know the answer to either of these possibilities..........
The departure of Lisa Park is really hardly a big deal - she's only been with the co for a year & was involved in metallurgy for the PFS etc studies...........
Again could be read one of two ways - either her services are surplus to requirements or she also has "been let go" for whatever reason - again both are possibilities
Onto Berry St capital........... a company ran by a Turk called Orkun Kilic with 9 employees and a very unuseful / shady website - hardly a respected heavyweight in the financial shark infested investment world..........
https://www.linkedin.com/in/orkun-kilic-8350476/?originalSubdomain=uk#experience
https://www.linkedin.com/company/berry-street-capital/
https://berrystreetcapital.com/
As for a capital raise rns - this is hardly a drama as this is what junior explorers / would be operators with no income stream(s) have to do on a regular basis - why on earth do people think this is such a drama - it is totally normal & expected seeing as the co have been on the promotional rampage for the last few months so were clearly heading this way..........
The only fly in the ointment is Neil Hume's conjecture re the capital raising which is quoted as "rumour" and not fact.
Maybe SLOG will clear things up over the next few days / weeks - as I'm sure there will be an announcement re capital raising in due course..........
atb
bn.c
smickster, it would allow us to definitively test the water as to how many potential buyers are out there. As I've said on countless occasions, if we simply allow BHP first crack, other bidders may well be deterred, particularly if we announce a deal in principle has been reached.
Any corporate financier would tell the company to market itself first and, if there was a decent level of interest, open the process up to competitive bids.
BHP are in a very strong position, but it's not unassailable and it's the duty of our director to establish the degree of interest out there.
Dbw, I agreed with your sentiments yday on this statement being the precursor to corporate action of some sort.
When an investor publicly refers to an "attempt" to fundraise before the company publicly announces said raise, I am inclined to believe it is/was a failed attempt to raise funds. Combined with the awful RNS, we are now unfortunately invested in a company in distress.
Also, prove up and sell does not equal take to production. That is spin worthy of Alistair Campbell
Obviously no one knows how many rigs are being used by SOLG at this moment. It could be presumed that other companies will be contracted to use them as it would not be expected that they, the owners, would twiddle their thumbs while waiting for work from our company. As this valuable equipment and it's trained operators would not be readily available in a country such as Ecuador, even if money becomes available through dilution/capital raising etc., there may be a considerable delays in drilling activities for the other areas of interest. Around and around we go!!!!!!!!!!! Perhaps, out resident posters who seem to have access to persons of influence with SOLG might like to enlighten us all with the number of drills now immediately being used and or available.
Sharket
“Yesterday’s RNS was one of the worst the company has issued since I’ve been invested here”
Yep dreadful…. Ironically? ( or intentionally) it has greatly increased the likelihood of a bid in the near term , all we need is a third party to take an open interest
Good morning SharketMare you are making the same mistake as addicknt.
We have not had a failed funding raise.
The only evidence being quoted on here is the Berry Street capital statement.
Read it, it clearly states that it is unhappy with the way it's being raised. Nothing has failed.
We are raising the money to advance to the next stage of production, which is the DFS. We are progressing as planned. Just a few more years to see us to production.
The last few days on this forum have been mad.
All because of the DGR presentation which saw NM state we are going to prove up and sell.
Sure that has always been the plan. Along with our mission statement that we are going to become a producer.
The statements are not mutually exclusive.
Take some time to work through what has been said over the past couple of years.
Nothing has changed.
The world's largest shareholder is not the world's largest miner.
It's Nick Mather through various holdings.
Surely addicknt not only are you admitting that the diverse book is not only an asset, but by attracting more bidders and potentially more shareholders, that this strengthens our position by making the book more diverse and making low bids near on impossible.
Who knows addicknt, you may start to show some potential as an investor.
Morning Quady, addicknt
I refrained from posting yesterday due to work commitments and overwhelming disappointment with the quality of the RNS we put out.
I think rather than people making things up because they are desperate for a sale, Quady, shareholders are genuinely concerned about the management and direction of this company, and whether or not they will see a decent return on their investment. One of the key players in delivering the Cascabel PFS has just been pushed out of SOLG, along with the chap who was responsible for sourcing finance to build the mine.
With the PFS addendum due later this year, to suggest it’s business as usual for this company is well.. misguided at best in my opinion.
That and an investor publicly expressing its disquiet (again) after what must have been a failed capital raise.
Yesterday’s RNS was one of the worst the company has issued since I’ve been invested here.
Add I understand the point you are making about being in control but do you think by offering up it would attract more people?
I honestly believe if your interested you already know and are probably watching solg closely.
It surely is available to anyone who has the means buy it regardless the stake you hold ?
Smickster, I agree, but if we manage the process it gives us a far greater chance of widening the pool of potential buyers. It is far more difficult to control a situation if you receive an unsolicited bid, particularly if the bidder is the largest shareholder on the register and the world's largest miner.
Indeed we have Smickster, which is why I said earlier that the presence of Norge and BR should give us some comfort. I would add Valuestone to that list.
Add I also believe this is the prime time for Bhp or another major to strike, so think you will get your wish soon enough.