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Https://x.com/i/grok/share/39QLeJwHjkOhp4CzheDDhPUdb

Ok trolls. This is not a prediction but how a corporate finance bod thinks about these things.

Soma has said it will close its fund raise today. That being true, they should be in funds Monday/Tuesday. It said in its fund raise document, production from El Limon in August. If you read the presentation from 7th July, it says 25/100 tpd from the former illegals. The illustrative grade is much higher from the former illegals. From El Bagre/Cordero the grade is 6/7 g/t, higher from Escondido and from the former illegals up to 70 g/t. Call the average for the illegals 25 g/t. If you do the cash flow model based on the above, the higher grade significantly accelerates the payments due to RRR and therefore increases the NPV.

From Soma's point of (IMHO) the optimum time to buy out RRR is when they know the plant is operating successfully, the team on the ground knows what they are doing, before they start processing the higher grade ore and before they go to 200/225 tpd. Why? Well because once all of those are in place the NPV is higher and the discount RRR would accept is lower.

The plan is to start processing the ore from Escondido during September.

Looks to me that Soma might want to talk towards the end of August (assuming the above is satisfied). So there is a tension between all of the above. Soma would want to do a deal on the best terms for itself but the longer it leaves doing a deal, the worse the terms will be. Why would it want a deal? Well because of PER.

Anyway, all to play for and DYOR.

zzzzzzz

Interesting timing.

The 30 day exclusivity on CDI is up on the 3rd September and the payment to POW is due by the 19th September. NB if they other side hasn't completed by the 3rd September, RRR can talk to other parties.

Soma says start of production at El Limon in August. Maybe he has timed it well.

DYOR

$3,401

https://x.com/graddhybpc/status/1953726288293716023?t=ua51k0yc_1GRFvzrMIlvig&s=19

DYOR

Boring Boy or the World's Greatest Partly Qualified Accountant, you did auditing as of your training (boring I know, the highlight of the day is which colour pen to use) and you know when companies do audits. Remember, they do them to confirm stocks as at the year end; stocks v flows and all that good stuff. Someone has to physically check that the stocks are there. In this in Harare and in Beira. Why would RRR incur that cost now?

For someone with a lot of experience as an accounts clerk you don't seem to know much.

zzzzzz

DYOR

Spec as usual you get everything wrong.

I am not an Insider. Regardless of what Boring Boy says nor am I a connected party.

The information about the settlement agreement is public knowledge. I have it in writing from the company that it is in the public domain.

Separately, I have posted it several times now but whatever. Read what Soma says:

"The El Limon Project (“El Limon”) is located in Antioquia, Colombia and is adjacent to the Company’s operating El Bagre Project. El Limon includes a past-producing underground mine and a gold processing plant with a capacity of approximately 225 tpd. In 2024, the Company resumed exploration activities at the Limon mine. El Limon is subject to a 3% NSR royalty, to a maximum of US $2 million. Upon reaching the US $2 million NSR royalty threshold, the NSR royalty decreases to 0.5% up to a maximum of US $1 million."

In the above, when using "El Limon" the company is referring to the "El Limon Project". The project includes the mine and the mill. So it is saying that NSR applies to the mine and the mill.

The wording was changed as a result of my letter to the auditors. Note they are no longer intimating that non-El Limon ore is excluded from the NSR. Anyway, they are now saying between 25 tpd and 100 will come from former illegals on the El Limon tenement. See the presentation dated 7th July.

DYOR

Not on Telegram Foggie. Do keep up. Concentrate on shorting the gold price.

zzzzzzzz

There's only one buyer and we know them pretty well. Think of it from their point of view 1 they have had limited cash and some high priority work to get to this point 2 there's been a lot of uncertainty about when things will be finished even about when el Limon will be restarted - July or August - 3 the share price hasn't probably reflected the value they think it is worth and the management holds a lot of shares 4 there comes a point where if they are generating revenue and profits turning the royalty payments into a capital transaction will flatter earnings on which they can get a PER and so will make sense 5 are we there yet? 6 if we are the ones to make the approach we probably lower what they will have in mind as a settlement 7 waiting until the fish were feeding (patiently) worked with Ivory Coast because there was a moment when it suddenly made sense for everybody in Australia to look at IC because of the way the market there was looking at IC and the value being placed on transactions and performance of companies doing transactions 8 so yes we are on high alert and following day-to-day as they close their $15m placement and funds come in but 9 to repeat there is only one buyer and nobody can force anybody else to transact and so it has to be right moment for both parties. We have very recently been in touch and they know we are here. Once they have the money in and once they have started mill operations and are producing gold at El Limon maybe in a month or two there will be a logical time to raise the question of whether both parties can benefit from a transaction.

It's not something we've forgotten

From AB?

You need to backtrack. What you have just accused RRR and AB of is fraud.

Touched $3,396 earlier.

$3,400 nearly here.

DYOR

Dukey, I do not have an opinion it is a fact. Para resources was a party to the agreement. You keep claiming you are in touch with Soma, ask the CFO.

As to Boring Boy he has rotated from it is worthless to imagine if we had kept it. From both of them the honesty and credibility is zero.

DYOR

I am sorry but you really do have issues.

I didn't panic. The wording was material and potentially misleading. The wording in this year's report was clearer and specific.

It didn't say that in Soma's Annual Report. You claim you are in touch with Soma: call the CFO and ask him. I know what he thinks.

"The El Limon Project (“El Limon”) is located in Antioquia, Colombia and is adjacent to the Company’s operating El Bagre Project. El Limon includes a past-producing underground mine and a gold processing plant with a capacity of approximately 225 tpd. In 2024, the Company resumed exploration activities at the Limon mine. El Limon is subject to a 3% NSR royalty, to a maximum of US $2 million. Upon reaching the US $2 million NSR royalty threshold, the NSR royalty decreases to 0.5% up to a maximum of US $1 million."

DYOR

Dukey, it is clause 3.6 in the settlement agreement. Ring the new CFO and ask him what his view is. There no whatsoever.

DYOR

Soma closes it's raise Friday. So it will be in funds Monday/Tuesday. El Limon about to be put back into production: good timing to do a deal on the royalty. $2/2.3mil would do it.

Soma might want to agree something and then execute when it knows the plant is up and running.

DYOR

Https://www.sedarplus.ca/csa-party/viewInstance/resource.html?node=W2331&drmKey=17fcedf0a55f92e8&drr=ss4a61ce40460e773ba09918f397f742967e01c031f024b9c2ee306cf580ac822bbe724301ac63cd7061bf25c84ae77542ux&id=0c11f8b7998bcd9688915ba178ff013225a0f5e7e7215167

DYOR

Looks like someone's auto trade button has gone crazy.

I think he is talking to you....

https://www.facebook.com/share/r/1LH5HQxGMC/

DYOR

Neighbours

https://sxg.irmau.com/pdf/a9b1d21e-0dec-4ed3-97ec-1107e41835d0/Southern-Cross-Gold-Achieves-Significant-Metallurgical-Development-at-Sunday-Creek-GoldAntimony-Project.pdf?Platform=ListPage

DYOR

Dukey, are you going to tell the boys and girls how many times you traded RRR and made money? All the while stating you would never buy RRR shares and anyone who did was stupid? What is it? Three times, four times? More?