Member Info for KB007

I got my fingers crossed for a BFS lol

I have 27 on filter so I would say you are close with 20

Are beginning to appear again

Alter egos,

Also Mog!

CGP sate in their presentation there are no pre-emptive rights or right of first refusal.

However this is contrary to what SOLG sates as well as what is written in the earn in agreement.

CGP haven't a Scooby imo

Future payments are repayable when it goes to production however for the 15% ENSA the costs incurred are payable on production of the Bankable Feasibility Study

That’s talking **

You at walking mince WiFi

Can’t be bothered m8!

Filtered

Don’t know your agenda here WiFi.

However you have answered it yourself. CGP need to contribute to costs accrued and costs going forward in order to avoid dilution whereby SOLG can pick up the 15% via a NSR

To be frank CGP took out a quick cash solution without fully understanding the dark detail.

Like a Wonga loan!

The main points Wifi are:
Can CGP fund it's proportionate share
Can CGP maintain it's interest in SOLG above 10% (8.85% currently)

If no then CGP's 15% converts to a 0.5% NSR

I know Mog

Nothing has changed except the increased cost of the NSR.

It was rearranged when SOLG upped its stake to the complete 85% and for CGP is was a welcome cash boost at the time. However I think they (CGP) sold their soul to the Devil (Alan Martin)

SolGold shall carry Cornerstone at a 15% interest in the project to completion of a bankable feasibility study (BFS) on SolGold’s schedule and budget. If Cornerstone fails to fund its proportionate share of ongoing expenditures following completion of the BFS and its interest is diluted below 10% such interest will be converted to a 0.5% Net Smelter Return (NSR). SolGold may buy out this and other royalties on Cascabel for payments of US$7.5 million ($3.5 million to buy out Cornerstone’s 0.5% NSR and $4 million to buy out an underlying 2% NSR to a 3rd party). SolGold may recover Cornerstone’s carried costs to bankable feasibility study from 90% of Cornerstone’s share of Cascabel project cash flows.

Below and excerpt from the initial JV which resulted in CGP being issued shares in SOLG.

On that note CGP keep getting diluted with every fund raise or cash call to BHP or NCM and I think that is what Nick has planned: if CGP get diluted below the 10% then I am sure, not 100% certain, that CGP's ENSA automatically gets converted to the 0.5% NSR

Following Solomon Gold's earning of its initial 65% interest, Cornerstone and Solomon Gold will enter into a joint venture and will fund their respective proportionate shares of ongoing expenditures and be subject to dilution according to a standard formula. After the entering into of the joint venture, Solomon Gold will have the option for one year to elect to earn an additional 20% interest in Cascabel by funding exploration towards the completion of a National Instrument 43-101 ("NI 43-101") bankable feasibility study ("BFS") within 18 months of making such election. The cost to Solomon Gold of the BFS is capped at US$20 million, after which the parties will contribute on a pro-rata basis. If Solomon Gold timeously exercises its right to earn the additional 20% interest, then any amounts spent by Cornerstone prior to that exercise and post Solomon Gold earning its initial 65% interest will be reimbursed to Cornerstone by Solomon Gold at 200% of expenditures incurred. 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.

by the way these were the terms that were given in respect of SOLG issuing shares to CGP

No, when the BFS is released they have to pay associated costs within 90 days or it gets converted to a 0.5% NSR

They would have had a 1% NSR but if they cannot pay associated costs within those 90 days then SOLG will be able to buy 0.5% for US$1.5m.

Then when a decision is made on production SOLG can buy the other 0.5% for US$2.0m if CGP have still not paid their associated costs.

It's in black and white below

Sorry, meant to add CGP is diluted below 10% since BHP's buy in.

CGP now sit at 8.85%

Wrong Wifi!

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.

Yep, Earthlings right!

Once the BFS is completed then CGP need to pay their 15% of associated costs with immediate effect; no share raise!

That's why I think the thumper could be to release the BFS and pin CGP in the corner.

Why would it need an MRE3?

SOLG have already prepared a maiden resource estimate so what is the legal requirement to provide 3?

The feasibility study just means there is more detail than a resource estimate and we have already released the resource estimate.

Colonel, what if SOLG surprised the markets with a boomer.

Put it straight to BFS without MRE3!

They are looking for financing: right?! What better way to sell yourself than to line up all the ducks!

Where would that put CGP? In the pocket of Nick as they would immediately need to stump up their share of the associated costs.

Ponder that!

It's difficult to factor in burn rate as we don't know what they have cut down on or are ramping up.

All I know is the previous 2 years their cash burn has been US$23m and in 2017 it was US$14m

Unless their burn rate has increased significantly then I believe we have enough to cover just over a year if the current rate remains the same