The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I got a response saying that no thresholds were breached hence no response to market.
However they never responded to the part where I queried the earn in agreement which states CGP should give notice of their intention to sell and SOLG has option to find a suitable buyer.
I queried again on that part.
Found the term sheet on Sedar... dated 24 February 2014 (3.6.b.2)
Page 10 - "CGP agrees that it will give SOLG 5 Business Days notice if it proposes to sell all or part of such SOLG shares, to enable SOLG to determine if it can identify an appropriate buyer(s) of such SOLG Shares and in the event that such a buyer(s) is identified, CGP will agree to sell such SOLG Shares to the identified buyer(s)"
Initial Agreement
Within 90 days of completion of the BFS, subject to Exchange approval, Solomon Gold shall issue to Cornerstone, at no cost to Cornerstone, ordinary (common) shares of Solomon Gold equal to 2% of the ordinary (common) shares of Solomon Gold then issued and outstanding. If Cornerstone fails to fund its proportionate share of ongoing expenditures and its interest is diluted below 10%, such interest will be converted to a 1% assignable Net Smelter Return ("NSR") on the property. Solomon Gold may purchase the NSR from Cornerstone on the following terms: Half of the NSR for US$1.5 million within 90 days following completion of the BFS; and the remaining half of the NSR for US$2.0 million within 90 days following a production decision.
IMO the $150m will be included along with detailed funding on development costs. Yes it might be distributed in lumps but the agreement for full funding will be there. Cannot see separate companies offering different packages for different stages.