Porphyry style propylitic and lesser intermediate alteration intersected in drilling suggests these first holes may occur proximal to a mineralised system. At least three additional areas of surface mineralisation are planned for drill testing in 2021 as La Hueca remains a priority target showing further potential as a copper gold porphyry discovery.
Looks more like first world problems, they got so many promising areas at La hueca that an occasional miss is more bound to be than it is bad luck.
The regional position of the Rio Amarillo Project is geologically consistent with district scale distribution of porphyry deposits, with the Tier 1 Alpala (9.9 Mt Cu, 21.7 Moz Au, 92.2 Moz Ag) and Llurimagua (16.9 Mt Cu) deposit which is located just 60km away.
Is it me or is this the first time that Solgold itself described Alpala as "tier 1" Even in the description of Alpala itself they only reference it as "the same age as other tier one deposits"
Board re-election a positive for independent shareholders
SolGold held its AGM on 17th Dec, with a total of 13 resolutions tabled and all passed. CEO Nick Mather was re-elected with a simple majority of 55% to 45%. While a 45% dissenting vote may appear larger than usual, we note that Cornerstone (7.5%), BHP (13.6%) and Newcrest (13.5%) represent a combined ~34.6% of the register. We believe Cornerstone’s publicly-stated opposition could reasonably be seen as a defensive tactic against SOLG’s efforts to acquire its minority partner in Cascabel. Meanwhile, BHP and Newcrest could have an interest in consolidating copper growth assets in Ecuador, in our view, and hence are not strategically aligned with SOLG’s other shareholders.
Cash from Jiangxi-backed ValueStone supports regional exploration
On 12th November, Valuestone Advisors agreed to subscribe for 11.9m new SOLG shares at a purchase price of US$0.42/sh for the gross proceeds of ~US$5.0m (~£3.8m), representing ~0.6% of the Company’s ordinary share capital, following the issue. The cash raised is not tied to Alpala, and therefore, it can be used for adding value through regional exploration programmes. Also, Valuestone is backed by Jiangxi, and so the deal indicates Chinese interest in SOLG to compete with BHP and Newcrest. The size of the investment appears to have been partially dictated by the number of shares SOLG were still permitted to issue in the current year without explicit shareholder approvals under the disapplication of preemption rights provisions. (i.e. we believe ValueStone might have made a larger investment had SolGold had the capacity to issue the shares).
A Diverse book is great, if all parties share the same endgame. This is not the case for Solg NM wants to take this as far as he can as "independent" company NCM/BHP WILL want to have either full ownership or at least full owernship of one or more of the subsidiaries, Rio, Porv, Alpala.
In this case a very diverse book works in the opposite way.
Ask yourself which case is most difficult.
Trying to bully 5-10 parties with no ties to each other (who each own A couple of % the company and who are ultimately here to make a profit), into following your bidding. And who do care how long it takes till payday comes.
Or trying to bully 3-4 parties who own 5-15% and who, as they are much more invested, will be more aligned because of the weight of their investment.
Most of these PI's will take 30% now over 80% in 5-6 years.
I can only hope that the Chinese investment is a ploy by NM, get them in and then convince existing parties to start selling at a premium to them.
PI's will have their return and NM will have a big supporter.
News will come before the AGM and I expect it to be much bigger than any regional exploration update
They value Cascabel at +-167MM and the combined value of all other Ecuador projects at 36,5MM.Is this still realistic with the Porvenir data?Or won't they change the value until the project is being further developed?
@Miagy Are we in full lockdown yet? No we are not, atleast not in the most parts of Europe and US. For me we are in the situation we in at the end of february. Governments are trying to do something but fall short. We still have the full force of the second wave before us. Altough I only forsee a major sell-off like we saw in March should the US-election result be contested.
My point was that current SP tanking had nothing to do with the state of the company, but with the sate of general market sentiment. I did not say that I expect Solgold to double again this time. I said we would quickly surpass the 40p mark. I only used this analogy to indicate how fast a SP can rise when sentiment changes. We are in an entirely different position than in March, you are very correct about that.
In that case you are right to sell. If your investing strategy affects your mental state it is better to take a step back. I do hope you keep showing up on this thread because I always like your posts, very insightfull.
Best to you and hopefully you can soon find the opportunity to jump back in, with easy of mind.
Why sell now? Almost all indexes are red, this selling has nothing to do with Solgold but with general sentiment. Once that sentiment turns we will be very quickly above that 40p again, and then some. Plus, look at the gold spot price charts. Then look at what happened during the first lockdown, right before March. Gold tanked, miners tanked. About a month later our SP was twice as high.