Member Info for Bozi

Morning Quady

The terms of any potential fundraise aren't going to be widely available as they were only offered to a select number of target investors.

If you drop an email to ir@berrystreetcapital.com I'm sure they'd be bale to give you more information.

Fort, it is fairly minor but it's there as you say, to get us through the winter and to a position where the company can budget 2023 spend at both Cascabel and the regionals. We have the investor protection agreement to think about as well and I'd like to think there will need to be talks with Lasso to get some of the spending/investment requirements amended to take account of both the lost time arising from Covid and also the true worth of SolGolds social and environmental investment into community projects.

The market has let the price drift down because it doesn't agree with me. It feels that something more significant is going to be required and that cash would rather wait on the sidelines until it has clarity.

You could also argue, at the time of writing at least, that the market requires this clarity over the perceived benefit of the catalysts you mention.

Personally I think both the Porvenir PEA and the Cascabel PFS addendum will both be value accretive for SolGold and the fundamental investment case will be enhanced. Whether that will translate to a higher share price I wouldn't be so sure, purely because I think we're nearing a market that will basically ignore good news and hammer anything remotely negative.

On the subject of regional JVs, I think we have to examine the context. I believe there's more nuance than simply saying "a deal with (for example) Barrick for 10 tenements will warm the share price". I think we'd see a little spike but I'd expect traders to sell it off like they did the initial PFS.

The crucial elements to any regional JV deal include:

1. Which tenement or group of tenements is it?
2. What are the deal terms - does this represent good value for SolGold?
3.How does the JV interact with the rest of the story including Cascabel, the corporate wrangling, etc?

I agree that the certainly has been a lot of posturing from SOLG on this. What we have is in fairly high demand after all, particularly given the ongoing restrictions with the Ecuadorean mining cadastre. It wouldn't have been too difficult for the company to do a few tie ups, particularly for those areas that don't fall under the priority regionals but have displayed some first pass exploration promise. The inference here given we've supposedly been engaged on this for the best part of 18 months is that we're simply poles apart with interested parties and whilst conversations may well have taken place, deals cannot be reached right now.

As far as I'm concerned there's an interesting story with Helipuerto. Have Solaris received any JV interest for Warintza and is there any interest in joining forces with SolGold and packaging up even more land and letting a major in on the action? I'm sure SolGold would be happy with a 20% stake in the larger project with the 80% split evenly between Solaris and a Barrick type.

Just realised some paragraphs got morphed and the last point cut off.

All I was trying to say is that SOLG shareholders will be so fatigued with the tit-for-tat that come Q1 next year they'll be happy to forego a good return for an average one and it's this sort of shift in thinking that let's a BHP get a foot in the door.

Really we need to hunker down right now, see what the company can do to keep us financed and hear how they plan to come out fighting ASAP.

Fortissimo,

The messaging appears to be that further streams are not an option at this moment in time. There's also a fair bit to be said for openly exploring another of these deals prior to a DFS and investment decision given that the funds would be for G&A and not directly for project development.

The use of too many streams will impact the economic robustness of the project and you could argue harm the prospects of a takeover. Who wants to buy an asset that is a good few years away from first production but highly geared before a shovel has broken ground? Every stream SOLG does now works in the favour of Filo, Solaris and Co.

This appears to have been overlooked.

I do absolutely agree that one faction of our register is going to be happier than the rest. That is absolutely the dynamic in play. Now, do you think BHP are going to be scorned or do you think it'll be Mather, given everything else going on around us? I've got an idea given that an important AGM is approaching but I suspect you'll see it differently.

The strategic review card is a bit of a red herring in my view. Why does SolGold need to announce a strategic review to bring others to the table? They don't. The fact of the matter here is that our door has been open for years now, ever since the standstill agreements with NCM and BHP expired...and what have we seen? A measly £7/8m from Valuestone. Everyone else knows where they stand. They know they can wait, remove the risks that come from being stuck in the market and potentially make their play by stepping in as a white knght with a counter offer to a low ball bid. I don't like that as much as you Fort but that's the reality of it from where I'm sitting.
Also, it's about time we stopped thinking that SOLG are bombproof because we have a tier 1 asset. There's a lot to be said about that misplaced arrogance. We are, for all intents and purposes, still a resource junior. Our funding options are somewhat reduced due to a weak capital market, we have a large shareholder who would like very much to comandeer what we have at a cheap price and furthermore they have ample motive to make that play a reality. I do see a placing as being the easiest way out of our current predicament and whilst Mather won't like it, there is at least something he can do about it (participate to maintain his stake). The same can't necessarily be said for many of the long term holding PIs.

My read from here, and I'm happy to say it because I'm happy to be wrong is that SOLG does the obligatory placing and open offer, by the end of September, raising about £25-30m. Same rubbish open offer as last year. Then, as we move into January, with at least one NED out on his ear, copper prices plunging as the economy teeters, then and only then will Mr Cazzubbo get something he wants to put to shareholders, maybe after a few weeks of BHP accumulating on the open market.

SOLGers, who let's be honest have been ready (in the main) to hand this ove

Quady.

In Darryl's own words, we "tested the market". This is quite a clear statement that isn't open to interpretation.

SOLG approached the relevant parties to confirm the terms it was willing to execute on and put the feelers out to see if there was sufficient interest. This didn't materialise, either due to significant shareholders refusing or potential new investors not showing the necessary interest meant that we did not proceed any further. The attempt failed or was not pursued.

Addicknt's point to you this morning about which battles you choose is good and sage advice IMO.

Any fundraise between now and December is very likely to be on poor terms I'm afraid to say. This isn't an assumption. It's virtually guaranteed given that funds weren't raised last month when the SP was at 25p. Those who know anything about the market and how placings are conducted will know that a recent lack of appetite will work against us and with market facing record levels of uncertainty on a 3-6 month timeframe, the coming weeks are going to be even trickier environment to raise new cash.

The company is therefore going to do very well to raise funds at 20p even. It will all depend on timing but should we go another week or two and see an SP sub 20p then the best we can hope for would be 17/18p.

Basically, every week we step closer to the AGM our position weakens. Everyone knows how long our current treasury lasts and can therefore form their own play.

Link this back to the BHP comments from Mike Henry from yesteryear. BHP have to make the price come to them. This is how they do it.

Everything happening now is not a surprise. It was on the cards the moment the SOLG board had to relieve Nick Mather of his CEO position. This isn't me saying Nick never made a wrong decision, but what it has done is create openings within our board. Openings BHP can use to strengthen their position.

Yes Monte. That is generally what is meant by the term "misappropriation".

In basic terms we were scammed, quite possibly something that was facilitated by an employee.

In terms of how it takes place - it can range from overpaying for a product or service through to plain old fraud.

A lot of the higher uppers in the mining game have their own company which they eill use to sub-contract. Same as pretty much any walk of life where those greedy enough have worked out that there's a few ways to skim off the top.

The $4.5m was probably an extra month's funds. To think it could be so instrumental in our future (it absolutely can for those willing to analyse all eventualities) is sad and slightly scary.

Smickster - I am talking about pre DFS financing options.

There's nothing technically stopping them do another but if they do they're giving away another slice of Cascabel profits and that's before we even set about raising finance for construction, which is where such deals are routinely expected and more conventional.

That's the salient point Addicknt. If you're BHP why would you need or want to reconcile with anyone?

The fact of the matter here is that they're chucking us a few sheckles once a year, change from the back of their sofa and we're moving on at a relatively slow pace.

BHP knows that it can stop the flow of it's funding at any stage and force the ball back into SOLGs court to go and get funding from other sources. We did that minor raise with Valuestone a couple of years ago but there's been little indication since that they're interested in funding us further.

I still think the Franco deal was fine but it was only going to be a one-off as far as pre-DFS non-equity financings go. Doing multiple of those deals as Anon suggestedast night is simply not an option.

Correct Addicknt. Newcrest have to fix their own boat, which is proving quite leaky right now.

I hear you Legalwolf.

Personally, I think we've done loads of work on the KSZ now, and varied work at that. We've got the various reports that deliberate on our findings and make recommendations for future activity.

Now it's time to move to the project of least (but still some) technical risk. Cobre should be a timely reminder of the upside case.

It's possible of course that the KCB doesn't yies the discovery either, in which case I think we have to take stock and admit that we've tested 3 very prospective areas in Botswana and haven't hit the bullseye. That's why we're an £8/9m market cap, with all the potential to the upside.

In the event that our ground is mineralised then everything the company has done from a corporate side to date comes back into view, i.e. the warrant bank and the runway to shareholder value for virtually everyone.

Agree D220.

Making a significant discovery in the KSZ strengthens our hand infinitely.

We can unfortunately expect this divergence to continue whilst SOLG remains low on funds and the risks around financing are prevalent.

Hopefully management knows what they need to do.

Legalwolf - it was out of his control though as you say. Yes it would hurt to not be in on an important asset but its not as if KAV were offered an option and passed it up.

We needed all vendors to agree and one wouldn't.

That said there's plenty to keep KAV going and more drilling is needed at Molopo Farms to validate the early findings.

Agree Metalhead.

All i would say is thst i was against the Molopo deal because it was further dilutive to Kavango shareholders despite the company already holding one of the largest landholdings in Botswana.

My view was in no way reflective of the asset which i knew was promising from previous holdings in Blenheim Natural Resources which partnered up with KKME about 5 or 6 years ago. Unfortunately Blenheim was a lifestyle company with no expertise to get exploration done, not a concern i have with Kavango.

I don't think it's fair to bash Ben because the deal didn't come off. He tried but it wasn't there for the reasons you mention.

Let's be honest. These reports are growing increasingly irrelevant.

For example, the company releases it's conceptual study for the KSZ and nobody bats an eyelid.

It all centres around the drill bit, and we need to get drilling these cu ag anomalies over in the KCB. This is what will instigate a recovery in the share price.

DBW - has anyone countered them on Oz Minerals yet?

I don't think they've spent the last 4 or 5 years making the moves they hsve to be worried about being countered.

They'll have a plan A, B and C for getting up towards 30% without causing too much of a ripple in the market. That is, of course, if they really want to buy us at all...

That would be a 100% premium Talatum

Potential time pressures where DGR are concerned Bankrupty.

I feel they're trying to strike a balance between selling what they need to and not caving the ALL share price.

Nothing has changed NoviceHunter.

The problem comes when people start polarising everything.

The reality is that someone can be allowed to have concerns whilst still rooting for a positive outcome. Just as someone can love the story without being a shareholder.

There are times when it's not a case or "X doesn't hold because they're not uber positive".

Good to see the SP buoyant this morning under fairly decent volumes. Let's hope it continues as that gices the company options where raising funds is concerned.

I'd have thought 14p would be more likely as the prospect of recession looks ever closer, investors flock to gold and the less risk averse look for additional upside via this, admittedly high risk, story.

It's been a disaster-class from PUR on how to run a mine. I'd back them to attain further operational improvements as Q3 progresses but is it too little too late? Legacy investors are hoping that rising gold prices amidst throughputs in line with the original mine plan can give this the jolt it needs, because based on the balance of information we're seeing of late, it looks like Anglo Ashanti are happy to write it off and let Sprott pick up the pieces.