The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
To be fair Jerry, this is about SOLG not NCM, BHP or CGP.
Nick is CEO and has his board on board, as well as Citi to stave off any unwarranted lowball bids.
In the best interests of SOLG it has to be all about SOLG!
Colonel, why do a fundraise for $40m and dilute when there is an opportunity to bring in both the PFS and BFS within the initial funding of $100m and if SOLG wish they could utilise the other $50m for other projects.
Nick has also stated that Alpala can well support additional streaming finance of up to $1b...
As said previously, the quickest and most direct route would be to get Blanca (Bonanza Grades) & Nieves (High Grade) to production in around a year, get streaming finance for a few percent on that then piggyback Alpala and the other tenements
As SOLG - prove up the project to PFS quickly then to BFS quickly within the initial $100m cost.
If successful, then the $52m owed by CGP will allow the 50% buy back of the NSR giving SOLG an even better deal at only a NSR of 0.5%
Quad the $100 - $150m is tied to a smelter return of either 1 - 1.5%, the only way the 12% becomes a factor is if SOLG does a buy back at 50% within 6 years.
The short term bridging loan of $15m is at the 12% so interest would be between $600k - $1.5m
..... with CGP's current shareholding (170m), if the share price is high enough then they could sell off when the funds need to be paid. It would reduce their major shareholding but allow them to keep the 15% ENSA
There can be no deals! Period.
The initial agreement was that SOLG would finance to BFS in exchange for 85% ENSA and CGP would then in turn pay their associated costs that had been covered by SOLG. Should CGP's share of ENSA go below 10% then SOLG can secure the whole ENSA for $3.5 million and a NSR of 0.5% to CGP.
When the Bankable Feasibility Study has been completed, CGP have to pay their share of the associated costs that SOLG have carried since the agreement was conducted.
There is no out!
Will CGP be able to get their hands on $52 million when BFS is complete?
Would selling their main stake in SOLG be enough to cover without losing their 15% of ENSA?
Think they might be sweating a bit knowing what they will have to pay!
No Problem AK.
Over a year ago I recall NM stating that Blanca would cost around $1 billion to bring to production when he was championing a piggy back and maybe it is just coincidental with the additional $1 billion funding announced today.
Who knows?