Member Info for Grimbergen

He knows where he wants to look :0

Funded (incl possible mine development cost share) via gold stream. V interesting...

Highlights:

SolGold and Franco-Nevada have entered into a binding NSR Financing Agreement for up to US$150 million.
For the first US$100 million, Franco-Nevada will receive a perpetual 1% NSR interest from SolGold calculated with reference to Net Smelter Returns from the Cascabel licence area.
The NSR Financing Agreement can be upsized at SolGold’s election by US$50 million to a 1.5% NSR interest within eight months from the date of the Agreement.
For clarity, neither Exploraciones Novomining S.A. (“ENSA”) nor the minority shareholder in ENSA will be liable for the royalty.
Key features of the NSR Financing Agreement include:
A 50% buy-back option exercisable at SolGold’s election for six years from closing at a price delivering Franco-Nevada a 12% internal rate of return;
A NPV neutral option in favour of Franco-Nevada to convert the NSR interest into a gold-only NSR interest, available for six years from two years after operation start;
Franco-Nevada is entitled to receive certain minimum royalty payments of US$10 million from 2028;
The inclusion of a NSR interest top-up mechanism in the event that actual mine production (measured on a copper equivalent basis) is less than 85% of planned production, as stated in SolGold’s most recent publicly filed technical report.o
Conditions precedent to the NSR Financing are expected to be satisfied soon after COVID-19 related travel restrictions are lifted.
Franco-Nevada has indicated its interest, subject to further studies, to participate in the financing of SolGold’s share of the mine development at Alpala via a gold stream. SolGold expects that, due to the gold-rich nature of the Alpala porphyry, the project can support up to US$1 billion of precious metals stream financing.

Received notification via email. Message header:

SolGold Agrees a Royalty Financing Package of US$100m with Upscale to US$150m from Franco-Nevada for the Alpala Project
The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to announce that SolGold has entered into a US$100 million Net Smelter Returns Financing (“NSR Financing”) Agreement with Franco-Nevada Corporation (“Franco-Nevada”), with an option to upsize the financing to US$150 million at the Company’s election, with reference to the Company’s flagship Alpala copper-gold project and the remainder of the Cascabel license in northern Ecuador.

Concurrently with the entering into of the NSR Financing Agreement, SolGold and Franco-Nevada have also entered into a US$15 million secured Bridge Loan Agreement (“BLA”) of immediately available funds as an initial advance (the “Advance”) prior to closing the NSR Financing Agreement. The full amount of the Advance will be disbursed by Franco-Nevada to SolGold today.

The Advance provides SolGold with short term funding at an interest rate of 12% per annum for a four-month period, with an option to extend the maturity for another four months. The Advance is in any event repayable with interest upon closing of the NSR Financing.

Franco-Nevada and SolGold have each received all required corporate approvals for entering into the transactions.

Franco-Nevada. A small advance from $100US package possibly extending to $150m...

Interesting

Tick ups all morning :)

Cheers BNC, that is interesting, looking forward to seeing now how this plays out.

Keep those crayons handy!

6 years! Blimey. Thanks for sharing BNC.

The bit I’m struggling with, is I can see little at this point that would take it south of the recent low. Baring complete catastrophe of course.

But by your count we are due one more big dip to at least that level. So often it’s hard to see what is likely to unfold, until after the fact, so I’m perfectly prepared to seem like a complete wally when we’re sat eventually sat on 9p a share! But it just seems quite unlikely at this point.

A pull back is v likely as you say, but so low again? The model suggests it

Jerryspaniel: “the one positive”...? Really.

What a negative nelly you are.

Quady, beat me to it!

I think I probably agree the copper price is likely to prove conservative, but as per my post, if you are seen to inflate a price forecast you leave yourself open to increased scrutiny and perhaps criticism.

I think the current price forecast for copper by SOLG is probably low, but if you start saying $4/lb copper you’re nearly double today’s price - however likely that may be, it wouldn’t be taken well I suspect and would undermine the analysis

Good spot BNC. I think it just reflects two different set of price drivers - short to medium term economies will contract due to impact of Coronavirus, traditionally bumping gold prices and reducing copper demand.

By the time production might start the price drivers are likely to be very different, so price forecasts are different. That’s all. I think!

Copper is at a fairly low dip historically so should over time return to the historic mean price, and gold is likely not to stay at this high point, post-crisis.

Can you see any other reason why they’ve gone with the prices they have? Seems fairly straightforward, and probably sensible (altho the market will always question projected price increases, now matter how logical, but won’t question a more conservative forecast).

Well done cookie, stay safe!

I keep accessing the file in different windows, just to make you feel someone’s checking it out :)

Honestly, thanks for sharing BNC, I’ll have a chance to look at it properly later.

Are there any areas where you have questioned your (sub-wave) counts? Seems there could be a few interpretations from my glance through it earlier, although I’ve forgotten some of the principles/rules, so I need to do a bit of homework! (Not doubting your work at all, just curious if there are areas you considered under a few different interpretations)

As always, massively appreciated the effort and sharing. I’ll post any thoughts later, after I’ve done my EW refresher course!

Cheers BNC, I’ll take a good gander

Cheers BNC, please post it publicly, I know you sometimes end up getting grief by the usual lot, but I know a lot of people also appreciate the info, and a chance to discuss anything other than bloody viruses!

Sounds like have one more deeper drop on the horizon. Could be challenging for the nerves!

Keep your pecker up though, this won’t last for ever. Brighter skies follow the rain and all that

Hi BNC, I hope you’re keeping your chin up mate :)

When you have time, would be interested in your thoughts on where this leaves Solgold in your EW model?

As far as I understand it’s ‘news agnostic’ ie doesn’t look behind the reasons for price movements, only that they happen and how it affects the likelihood of certain patterns coming to pass.

When you looked before, ahead of the covid-related movements, we were looking at the lowest price to begin to understand what might come next, and the length of the next wave/a. I chuckled when saw the really low prices (can’t remember the Fibonacci %s, maybe 10/11p being 75%?).

These are extraordinary times, does this negate the calculations, does it get factored in, and if so what might it mean?

Thoughts/discussion appreciated! TheItalian, I think you looked at this too, your thoughts?

Stay well people!

Thanks Pinot

I’m not sure that’s a gouda idea

Earthling - exactly! Having a balanced board is great, having it swamped all day with false agendas is not helpful to anyone.

Glad you've had a more enjoyable day :)