Member Info for Fortissimo

In theory it should be wedded to ENSA but that's not how it reads. The royalty is referenced to Cascabel and if you read the Franco deal notes you'll see it was ring fenced to ENSA. The RNS was 'light' on information regarding the $50m and let's face it, we've not heard. been from Darryl since the Merger webcast on October 7th. My guess is that if all work is halted on ENSA pending a sale process, then the $50m will potentially last 12months or to around October 2023.

Another scenario is that the market knows that SOLG wants $100m in total and that the other $50m will come from placing the 6.7% CGP shares post the PFS2 and Porvenir PEA RNS's which might result in an so of mid 20's to 30's?? 157m shares x 30p = $50m or thereabouts.

Then while sale process is on with ENSA, they drill like mad across Rio and other targets adding some spice to the first 6 months of 2023??

So lets look at the SR in overview priorities

1. We have ENSA to sort out. We either raise $3bln and go to production or we seek partners or we seek a sale or we float ENSA on US markets like Rio did with Turquoise hill. Any other options out there?

2. We have a priority folio of exploration targets. We either raise capital to explore them. Use capital from ENSA sale or IPO to explore them or JV partner deals and reduce ownership by get free carry or zero Capex costs to PEA? Any other options?

3. We have another 50 licence blocks with roughly $7.5m required spend / Capex or relinquish them for minor fee. We've apparently be in discussions with various interested parties over 'packaging' these up for JV's or sale. Overall, the Capex commitment is around $400m.

4. Porvenir - PEA due soon and then what are the options? Raise funds, do deals/JV's with Valuestone, Lundin, Codelco and so on? What's next for Porvenir? PFS? DFS? Use funds from ENSA sale to take it to production??

There are a few other things to consider such as stream deals, loans, CB's and so on but that falls under point 1.

As mentioned before, I believe the Osisko $50m is not restricted to ENSA (or they would have said so) and that might have been the main reason for not using Franco or Boliden. $50m is a sizeable wedge when you consider that PFS2 is virtually complete, zero exploration is going on apart from rock chip samples stuff etc. So question is... what's the forward plan for Porvenir...? Monetise it / swap in / out deal with Sunstone/Lundin and do some combo drilling on warintza? Who knows. But we'll find out soon.

I'd more concerned if NCM were happy with royalty deal lol! The fact that they are not happy comes as no surprise at all. If Biswas said something like... we offered SOLG cash and were willing to do it at 35p... blah blah... then I think I'd listen to him. But highly likely he was looking for a cheap placing and thought that a better idea. Well, that's what you get when you try and strong arm the little guys.

With CGP's 20% (post merger shares) NCM and BHP have no chance of instigating or carrying any weight at the upcoming AGM.

And that's the significant change since past AGM's. As Twigger correctly said last year (in his own words) put up or shut up.

Loven it!

addicknt

THere's still the small matter of getting the merger all sorted and we should see some movement on this pretty soon as the days are disappearing fast. In theory, SOLG has kitchen sinked things over the last few months. So now we have a clean set of accounts (did CGP insist on a forensic review prior to merger hence the $4.5m finding??) we have new directors (and many old ones booted). We have funding in place. These are all nice stroking events which paths the way for CGP holders to vote the deal through. Another point worth considering is the forex element. With Dollar and sterling almost nearing parity, it makes sense (20%+ sense) for CGP to move their interests into SOLG London listing.

AGM notice must be due soon and with that we should get the proposed resolutions which will be interesting.

One thing is sure, monetisation of assets or asset is on the way but in what form we will not know until strategic review completed and even then that can be usurped by likes BHP making a bid which acts as a counter offer to the review for shareholders to ponder.

Surprised the sp isn't back above 20p+ levels but SOLG always tends to trade with some lag. When it moves, it moves fast.

Sorry addicknt, I think out posts have crossed.

Agree.

addicknt
Just read your post again and can see it's kind of rhetorical posit. We are clearly on the same page here. There's no way CGP would be moving over from TSX to LSE without knowing the end game and having some guarantees.

The only thing we don't know is how the strategic review might look. Will it involve an IPO of ENSA (like turquoise hill). Will it involve a full sale? If CGP are to get their pay day, then it has to come from SOLG shares or a divi or some form via SOLG holdings.

addicknt

I was the one that raised the point about timelines on the Strategic Review. I was merely suggesting that it might help if we all knew how long this process might take or if SOLG put a self-imposed target date on it.

FWIIW, I don't expect the process to take very long at all. I think the 'direction' of the company was decided months ago and was required prior to any CGP deal. Look at it this way... if you were Irwin or CGP would you go blind into a merger or would you only enter into the merger if you knew the desired direction of the business was in your interests??

Sometimes I do wonder about you addicknt, you seem to lack common sense. Surely you can understand what the pre merger deal discussions would have looked like??

I also mentioned on the last RNS the fact that Twigger was putting his name to it when I expected Darryl to be on it. Yet again, we have a big RNS on funding and you'd think the CEO's name would have been all over it. Nope! Twigger seems more active these days doesn't he?? Have you worked that one out yet??

Also, did you note that the Osisko finance deal did not have the same handcuffs as the Franco deal?? Might explain why SOLG went with Osisko rather than Mitsui or Boliden etc. The $50m appears to be available for ENSA and non ENSA (porvenir) as far as I can see.

SharketMare,

Alpala is a tier 1 project. It's going to be producing for 20 to 30 years+. It's going to take roughly 5 years to build. Inching toward Ecuador election?? Lasso was elected in spring 2021. Next elections are not till Feb 2025!!! Inching closer?? Have you lost the plot or something or desperate to find something to worry about... 3 years+ away! Of course politics has a factor in all countries and mining. But Alpala/cascabel will probably see around 6 election terms with different leaders on many occasions. Get used to the idea. Super majors are well adversed in dealing with governments.

You were wrong about the fund raise, wrong about the royalty and now you seem to be suggesting that there might not be a buyer interested in SOLG or Alpala? I think you need to take a look at yourself and start questioning your own analysis.

You have absolutely no idea of whether SOLg have zero buyers lined up or 10.

Forget DFS for goodness sake. Do you really think a buyer is going to be following SOLG's PFS and DFS blueprint?? They'll rip the lot up, size the mine twice over and make 3 x the profits albeit with double the Capex. That's how super majors work.

Take a look at Noront. See if you can spot any interested buyers in the stock before first bid landed. Any trading waves? Any noticeable action?? I'll save you the time. Zero. All was flat as a pancake until someone made the first move.

Noront 23cents one day became 55 cents another, then 75+ and then sold for 110cents. A 5 bagger.

A 5 bagger from 18p would see 90p for SOLG. Just imagine that.... or in your case.... perhaps not.

Copperpot,

stop talking carp

SOLG will not be going to production. Ask Irwin and the CGP boys.... they have already told you where this is going and are so sure of it that they signed over their company and only bit of leverage in the matter.

These are money men. Maxit et al. They don't move over to another side unless that side is where the money comes in.

Now put your tackle away.

"a crap shoot in Ecuador"

I think I'll go with Franco's, Boliden's, Mitsui's and recently Osisko's view of the 'crap shoot in Ecuador' You better tell Norges and Blackrock too. Not to mention Fortescue... second largest block holder in the region.

I think you've nailed your colours to the mast on that one Sharketmare.

Now... how many times to I have to tell you to sell GGP and buy SOLG??

sharketmare, I luckily dumped GGP with small profit at 9.1p after buying bulk at 8.5p. I thought SOLG offered a better investment after it dipped to 15p, I couldn't resist adding further. I can't see GGP going much higher than 12p or 13p. Whereas I can see SOLG doing cartwheels to 50p+ and beyond.

GGP's have 30% of the asset. They gave away 70%. Since then, they have given away a further 14.7% to Wyloo (assuming the exercise the warrants/options). In return they effectively gave away 15% of GGP for £70m. In contrast, SOLG have 100% of ENSA (a proper tier 1 prospect) and have raised $150m over last 18 months based on royalty deal. You are right, there is no comparison at all and SOLG wins hands down as the better investment.

I'll leave you with one of your insightful posts to me some weeks ago... how many times do you need to tell me sharketmare?? And what happened to your $30m raised at 17p??

You'll learn.

"SharketMare
Posted in: SOLG
Posts: 1,054
Price: 16.34
No Opinion
RE: Are we27 Sep 2022 11:06
Fort, on August 5th our CEO said in print that he was not considering offtake agreements until the DFS is published. I don't know how many times this needs to be repeated before you stop claiming that SOLG presented an option to BHP and NCM that involved $100m from Boliden." END

This deal is slightly different in so much that it's $50m and not $100m. I can't argue with your views on CGP re the last royalty deal but in terms of being a poor deal that's where it ends. Apart from NCM and BHP throwing toys out of the pram, just about everyone else was overjoyed with the $100m and lack of equity dilution. Today, Mather and team have delivered another great royalty deal at a time when capital raises are tough. Just look at GGP deal with Wyloo. Not a good deal at all when you compare it to what SOLG have achieved. That's $150m raised by SOLG without any equity dilution and a minor drop in royalty income on the asset as a whole.

BNC... I hear you... but there is a price for those 20%+ CGP votes (post merger) at the AGM. Had CGP sided with NCM and BHP this time around, I think the AGM would have been ugly for us smaller shareholders. Instead, we now look much much stronger, fully funded and BHP and NCM can't do squat. That's taking the company back into our CONTROL.

It's terrific news and anyone that thinks equity dilution is better than a royalty deal needs their head checking... Orthernkeeper... what are you on??? Shareholders crying out for monetisation and SOLG delivers again.

I'm over the moon and looking forward to see what BHP do next. The AGM disruption ploy is a no go now. They have one option left... make a bid, or discuss a ENSA deal or just watch from the sidelines and see the royalties/streamers gaining more and more chunks.

Now, what about Mitsui?? Are they lined up next in 6 months time?

CGP shares trading near June 22 levels now. On a comparable basis and like for like on time frames (June 22) SOLG were trading at 35p.

We've practically added 15% of the market cap today with the royalty deal based on just 0.6% lifetime metal sales.

The market was waiting on the fund raise. The market got news of the $50m raised but the market didn't get a slice. Poor old market. Now the market has to buy in the OPEN market.

Shame!

Well done Mather and team. Another victory for the little guy.

Bozi, that's not true. It really is as simple as this.... you wet yourself over financing and spread doom and gloom across the bb for weeks on end. I countered that on a regular basis saying that royalty deal was an option and equity raise not required. I also highlighted that the lower the sp went the less likely an equity issue. I was right. It's not about being an uber bull or bear. It's about being able to understand strengths and weaknesses with SOLG and whilst some flap around like yourself, there are others out there (like myself) that see things very differently to you. We've been proven right and I believe we will continue to be proven right. My mantra has always been that SOLG is all about the asset. And the asset is world class and desired by every super major out there and streamer. Make no doubt about that.

I'll leave it there as to be honest, can't really be bothered with you anymore.

Bozi,

You said a deeply dilutive equity raise was coming not to mention a bucket load of doom and gloom.

You got it wrong. Are you deluded or something? You are now claiming you called it right?

We are not running out of time... we are fully funded for what looks like 8 months+.

Get a grip you've been wetting yourself for the last 3 months for no reason at all.

Bozi,

Give it a chance. Does it matter whether it takes 2 days or 30 days to get back to 30p+? I'd prefer the latter as imagine we need to drop a few newbies off at the poo, before flushing a few more out at 22's.

You were told funding was not a problem and still chose to see all the negatives. Now SOLG have proven that funding was never an issue, you're frustrated that the sp hasn't done cartwheels today?

The sp was at 21p/22p after the CGP merger news RNS. We then slipped back after blackrock selling and focus resumed on funding.

Just be patient. What's not to like now? No funding fears haunting us and PFS2 and Porvenir PEA to come along with strategic review results.

SOLG could be 25p on Friday. Or 18p. Does it matter? Not really. What matters is where we are after PFS2, Porvenir PEA and strategic review news. If we are still sub 20p then I will be very surprised. But US markets are being artificially raised purely for mid terms. Happens every time. So market backdrop could still play a factor as post mid terms, US markets might take a turn south.

The way I see it, SOLG either sell ENSA and retain the exploration folio or they sell out lock stock and barrel. We know what lies ahead in the future regarding Copper. But just let that copper shortage soak in a bit... yes Alpala will deliver a bucket load of copper/gold and pm's over the next 30 years+ but SOLG's folio is second to none in Ecuador. Remember permits are hard to get and likes of Fortescue (second largest licence block holder in Ecuador) have already had problems with eco warriors and indigenous communities. So ironically, it's the untapped SOLG folio that is likely to be the most valuable part yet the market values this at close to zero due to lack of exploration/discoveries. Alpala will not solve the globes copper shortages. But throw in RIO and a few other targets in SOLG folio and you then have a mining nation and Ecuador are ready to take that step give or take a few hurdles which Lasso is taking care of.

The strategic review may well result in the conclusion that they will seek a buyer for ENSA. Shock horror not! But the interesting part of the review might well deliver the forward story which will indeed see SOLG try and rinse and repeat via exploration. Some investor won't have the appetite for another 10 years+ to see something along lines of Alpala, but what if SOLG change strategy and drill some licence blocks, bank some great holes and then sell the blocks on long before any talk of production emerges?? Each one of these early exploration finds could be worth north of $500m. And the regional foil could have 10 of these with ease.

Now funding sorted, all attention moves to PFS2, Porvenir PEA and the long awaited conclusion to the strategic review, which if you want my honest appraisal was finalised and agreed some months ago lol!

Should be an absolute stonking end to 2022 for SOLG with all action coming in last few weeks. Had to wait a while... bt it's coming alright.

Considering the connections between Sandeep (co founder of maxit) and current CEO of Osisko, it's borderline 'insiders' deal. I said a week or two ago that I would have been disappointed if the 6.7% CGP SOLG stake got placed at a discount to someone like Maxit. Maxit sold out to BHP at 25p many moons ago so the idea they could get back in with a wedge narked me. So the royalty deal (in effect) is an another way Sandeep seeks to gain. No problem with that apart from the fact that it potentially looks like a bridge loan... SOLG have facility to buy it back (most of it) or future buyer. Now if Sandeep (closely connected to CGP guys) knows they are selling out to a buyer (post strategic review) then he's effectively loaning that $50m and securing it against royalties but firm in knowledge that someones going to be buying it off him.

You see... when certain 'money men' see the green light for a monetisation or disposal.... often you see a bit of nest feathering going on before the event. Ugly I know... but that's the way it is.

Maxit or rather Sandeep... very much involved here and bodes well as these guys are smart cookies as is Mather and no one will be getting SOLG on the cheap post PFS2.

I wonder whether BHP put the finger on Mitsui (as they have a few deals together) and they thought that would scupper SOLG's plans? I bet they didn't see Osisko coming.

As Nick said a few years ago.... funding is never a problem as Alpala is a streamers and metals companies dream. Such a great mix in the bucket that makes it so great.

Be interesting to see if Mitsui are still involved.

Now... we just need to get a JV deal on licence blocks in the south with Lundin/codelco et al and we should be looking in fine shape.

There was a time when mixing $50m up with £50m made a sizeable difference. Way UK is going $50m might be worth more than £50m soon.

Just wait until they've tidied up their coffee spillages over on TSX and then guess we'll be back into the 20's.

Market has absolutely no reason whatsoever for keeping SOLG sub 20p now. We should be 25p+ based on recent market bounce.