The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
SolGold is also pleased to have received material offers for funding in exchange for offtake from a number of traders in their recent EoI submissions. Offers included the provision of both short-term and longer-term capital with proceeds available for studies, mine construction and cost overruns as well as working capital during ramp-up.
Yep! It's going to production...said it for years.
Within two weeks the Alpala project will be fully funded to completion.
Are BHP and NCM gonna come with an offer prior to that funding arriving? Don't think so!
An offer after the funding arrives would have to mahoosive!
lol just deflect the anger Bhar
Have held OMI since June 2018 and if you check my posting history you will see that.
Have quite a significant holding in OMI but only down about 40% not the 90%+ that I reckon you are.
Never buy on a spike....wise clergy words :)
I have seen it with SOLG and your approach is the same.
There is one answer - sell... if you are getting ulcers and can't see the wood for the trees... get out.
I'm tired of reading your negativity ...Day in! Day out!
I get a notification for news and I pop in... sorry.
I'm annoyed I'm having to wait for the BOOM but it will come... so relax!
Colonel, don't worry there won't be an equity placing IMO.
Don't be surprised if the whole $150m comes as part of the offtake agreement and likewise if the funding for the mine build is not included
We reported on March 11 that we will need to raise $150 million to complete the feasibility study and for regional exploration and there are no changes to that, so within the next couple of weeks we plan to do a financing he said.
Hofmaier would not comment on whether the financing will be a bought deal, investment by strategic investors, or a private placement.
The completion of a feasibility study for Alpala is likely to experience delays due to travel restrictions and quarantine measures related to the COVID-19 virus outbreak in Ecuador.
Ecuador has been the worst hit country in South America and so we are missing some inputs due to our reduced activities [on the ground] such as environmental monitoring, land acquisition, studies for tailings and geotechnical holes, he said.
The November 2019 PEA outlined an average of 810,000 tonnes per year of concentrate in the first 15 years of production from late 2025 grading 28.2% copper, 22.1 grams per tonne gold and 65.7g/t silver containing 230,000t of copper in concentrate, 580,000 ounces gold and 1.7Moz silver.
Hofmaier was confident, however, that the company would be able to put a project financing plan in place this year given the overwhelmingly positive https://www.mining-journal.com/capital-markets/news/1385058/solgold-receives-interest-received-for-alpala-concentrate expressions of interest it has received from smelters and traders for the copper-gold concentrates the mine is expected to produce.
Not a single expression of interest had worse terms than we put in the PEA [preliminary economic assessment] so we know the market really wants this product. We will take a balanced approach between traders and smelters. The offers of some smelters have attractive funding attached. It is very clean with low levels of deleterious elements and the high gold content and long mine life mean it can be an important part of their smelter feed for decades, he said.
Hofmaier said he expected to respond to short-listed companies next week and enter into more detailed conversations with the aim of receiving memoranda of understandings. However, completion of this step will be difficult to achieve until travel restrictions in Europe and Asia are lifted.
We can do a lot with conference calls but as these are essentially partnerships we have to go and meet people, especially in Asia and the three major European smelters, he said.
Shares in SolGold are trading at C35, valuing the company at $673 million.
Wrong Jerry.. smelters are getting a long term deal at an agreed price for the release of funds.
No interest applied!!! Investment depends on the agreed price per tonne over how many years the smelter can agree the discount.
It’s worth nothing in the ground. The smelters want it out and SOLG want it out so it all boils down to what can be negotiated over the short and long term. The benefit comes from the discounted price not how much interest would be applied if!
The Offtake agreement won't be any % from SOLG.
It will likely be that SOLG will supply CU, AU or AG at so many tonnes of concentrate, for so many years at a certain price per tonne.
For example, just from my head, 50,000 tonnes of concentrate at $1000 per tonne for 15 years.
Revenue from that deal would be $750 million but full value would be determined by sale value set by the markets pice.
No 15% - 20% interest rate applied
Just an example by the way
During the first two years of the Exploration Agreement (commencing September 2018), Newmont is committed to spend a minimum of US$1 million per year on qualifying expenditures (“Minimum Work Commitment”), or pay Orosur cash in lieu of completing said minimum work commitment, in order to maintain the Phase 1 earn-in right. In years 3 and 4, the Minimum Work Commitment increases to US$4 million per year.
The Exploration Agreement comprises a three-phase earn-in structure, allowing Newmont to earn up to a 75% ownership interest in the Anzá project by making cash payments to Orosur equaling a total of US$4 million over Phases 1 and 2, spending a minimum of US$30 million in qualifying expenditures over twelve years, and in addition completing N.I. 43-101 compliant prefeasibility and feasibility studies through the end of Phase 3.
In Uruguay, Loryser is focusing its activities in the implementation of the Creditors Agreement. The Creditors’ Agreement requires Loryser to manage and complete the sale and payment process within two years, starting from the date of the ratification by the Court in September 2019.
Board Changes
Louis Castro has been appointed Chairman and Non-Executive Director of the Company replacing Bob Schafer, who has retired from the Company's board.
Mr. Castro is a chartered accountant and former investment banker with more than 30 years' City and industry experience. Louis is a non-executive director and Chairman of the Audit Committee at Stanley Gibbons Group plc, Jangada Mines plc and Tekcapital plc. He was previously CFO at Eland Oil and Gas, an AIM listed upstream company operating in Nigeria, and CEO at Northland Capital Partners investment bank and broker, where he represented a significant number of mining and oil & gas clients, including clients in South America.
Mr. Schafer joined the Board of Orosur in June 2018. He has recently been elected as President of the US-based "Society for Mining, Metallurgy and Exploration" ("SME") and is focusing his time in this new role.
Ignacio Salazar, CEO of Orosur, commented:
“We are pleased to announce the appointment of Louis to the Orosur´s Board and welcome his proven track record in the industry and in capital markets over decades. Louis’ significant experience is of notable value given the Company’s focus on advancing the Anzá Project in Colombia whilst progressing other opportunities. It is with great regret that the Board has accepted Mr. Schafer’s decision to retire. We wish him all the best in his professional and personal endeavours and thank him for his service to the Company and its shareholders.”
Orosur Mining Inc. (“Orosur” or “the Company”) (TSX/AIM: OMI), a South American-focused gold developer and explorer, is pleased to announce the results for the third quarter ended February 29, 2020 (“Q3 20” or the “Quarter”) as well as the appointment of Louis Castro, aged 61, as Chairman and Non-Executive Director of the Company to replace Robert Schafer, who has retired from the Company's board.
HIGHLIGHTS
In accordance with the Exploration Agreement with Venture Option over the Anzá project in Colombia (the “Exploration Agreement”) with Newmont Colombia S.A.S. (“Newmont”), Newmont made a cash payment of US$690k to Minera Anzá in November 2019 to cover its outstanding commitments for the first Year of the Exploration Agreement (September 2018 to September 2019) and to maintain its phase 1 earn-in rights.
In Uruguay, the Creditors Agreement was finally approved by the Court in September 2019 and, as a result, became legally binding on all trade creditors. During Q3 20, Loryser focused its activities in the implementation of the Creditors Agreement and the sale of its Uruguayan assets. As agreed in the Creditors Agreement, on December 19, 2019, Orosur issued 10,000,000 common shares to a trust for the benefit of Loryser’s creditors.
As at February 29, 2020, the Company had a cash balance of US$463k (May 31, 2019 - US$512k).
After the end of the Q3 20, as previously announced on March 5, 2020, an additional cash payment of US$500k was received by the Company from Newmont, in connection with maintaining its earn-in rights pursuant to the Exploration Agreement.
Assets held for sale in Uruguay have been recorded in this quarter and in the FY19 consolidated financial statements at the lower of book value or fair value. The consolidated financial statements were prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted for as Assets and Liabilities held for sale and Profit and Loss from discontinuing operations. This accounting treatment has been applied to the activities in Uruguay and Chile.
Outlook and Strategy
The Board adopted an aggressive strategic plan to restructure its business, and recapitalize and transform the Company by advancing its Anzá project in Colombia (now with Newmont as a partner), whilst progressing other opportunities, as well as finding a fair solution in Uruguay for all stakeholders. This strategy remains unchanged.
In Colombia, Newmont met its Year 1 commitments and payments pursuant to the Exploration Agreement. In March 2020, Newmont made the third US$500k cash payment to Orosur with the fourth and final payment of this sort expected in September 2020.
In Phase 1, Newmont may earn a 51% ownership interest in Anzá by spending US$10 million in qualifying expenditures over four years and making cash payments to Orosur equalling a total of US$2 million during the first two years of the Phase 1 earn-in period.
$60 Billion
21.7m oz Gold @ $1400 per oz minus NSR of 0.613 = $18.623 Billion
9.9 m Tonnes Copper @ $3.40 per lb minus NSR of 0.613 = $41.267 Billion
92.2m oz Silver @ $15.36 per oz minus NSR of 0.613 = $868.1 Million
Total $60.75 Billion