Member Info for KB007

Firstly, to intimate SOLG will be done and dusted for a price in double figures is preposterous!

Currently, BHP are in no position to choose anything and are at a stay for the next 2 years unless another major steps in.

If they were to attempt any move it would need approval from 60% of the board

Nick has continually stated he wants to take it to production and unless the offer is substantial enough to outweigh the full potential then I can see it going this route.

We have several other possible tier 1 targets that need to be considered also

La Hueca
Timbara
Porvenir
Blanca Nieves
Tandayama
Aguinaga

Double digit sell off my pants!

SOLG days are numbered?

What utter drivel!

Our aim is to fast track towards development.

Alpala is just the beginning for SolGold and we can see the emergence of the Company as a copper gold major and Ecuador becoming one of the world's largest copper producers as a result

Yes and in the event of a sale the 15% of ENSA is offered to SOLG in the first instance under the conditional agreement in respect of the pre-emptive rights

Corenerstone only own 10% of Solgold not 23%.

Pre-emptive rights mean that in the event of that 10% that CGP own being sold the rights would defer to SOLG to buy out the 15% of ENSA as first refusal for circa $3m plus recovery of all drilling costs

If BHP were to buy out CGP, with the permission of the board it would give BHP a 21% holding

To say that money talks over the pre-emptive rights is tosh!

I said they would need SOLG permission. you have just reiterated what I said.

Additionally SOLG hold pre-emptive rights in respect of the ENSA disposal

There isn't a standstill in respect of CGP. The standstill part of the agreement is in relation to BHP acquiring shares in SOLG and they are allowed to buy up to the same holding as CGP. (circa 42m on open market)

They would be permitted to acquire CGP providing 60% of the board (outwith BHP holdings) agree.

SAV under the agreement between SOLG and CGP , SOLG gets first refusal on ENSA. This is not passed on to any company that takes them over.

SOLG will give consent for BHP to acquire CGP.

It makes plain business sense as SOLG will then pick up the remaining 15% of ENSA along with all drilling costs to date.

Essentially funding further drilling at other concessions.

Just bought another 12.7k

Mark my words CGP will fall into BHP's hands soon.

BHP are permitted to acquire further shares through acquisitions and a further 42m on the open market.

This will hinder any other major coming in for a piece of the pie and allow BHP to relax for the 2 year agreement unless there is a massive bid from another major.

When BHP do so then all drilling costs will be to SOLG allowing further drilling of the other prospects and the 15% ENSA will be transferred to SOLG for a mere couple of million.

As soon as CGP is taken out by BHP it will give a degree of stability and allieviate speculation over hostile takovers

Okay. BHP or any other major paying £1.20-£1.35 just for Alpala is not a takeover.
Not in my book. Would be content if that sale went through although I doubt it at that price.
There are plenty more prospective tenements which long term will provide higher share prices
A takeover of the whole company would be for much more than one or two pound a share

If there is a takeover offer, and I say if and I am not ruling it completely out, then I don't think a sale price would be in the region of what people are saying. £1 - £2 is not full shareholder value and I don't think Nick would consider his either.

£4 or £5 a share yes or more would be more likely

The

To quote Warren Buffet - the stockmarket is a way of transferring money from the impatient to the patient and if you can't imagine investing in something for over tten years then don't think about investing for ten minutes.

Or something like that.

I reckon we are around 4 or 5 years from full potential

Also, I wouldn't mind BHP buying out CGP then the 15% ENSA would transfer to SOLG along with all drilling costs to date. Win/Win

Neither company has the wherewithal to go it alone. This has been stated many times previously by analysts who have indicated it would require a JV of sorts to proceed to production. With NCM getting in early and now BHP I don't think they will allow any other company to swoop in.

This tenement is massive and this is likely to be Nick's last bash at any company considering the amount of tenements we have. He is leaving a legacy and deserves kudos.

He has always stated in revious ventures that he is looking to sell on and I don't think he is fooling around when he says he wants to take it to production.

I'm an old poster and I don't want a sale; I'm prepared to wait several years to realise full value and I'm not chomping at the bit for a piddly one or two pound sale price.

We have top talent in the company, some from Newcrest and it won't be long before BHP has it's representation at the table. To be frank I also do not think SOLG is at the scratch stage of it's growth. We are well past that.

It wouldn't cost $3 billion if it were to go down the block caving route, probably half that, and if they can mine in tandem with Fruta Del Norte then it will be self financed.

There will be no take over however I strongly believe that there will be a three way joint venture (SOLG/BHP/NCM)

Everybody is truly deluded if they believe one persons' negative ramblings on a bulletin board will have any real impact in the share price

Mog!

On first point - BHP can acquire a further 42m shares on the open market without the consent of SOLG.

Unless approved by SOLG they cannot acquire any past the 246m figure.

Under certain circumstances I have taken that to be, if a third party interest arises, all bets are off and BHP can then move for a takeover.

They could also go down the aqcuisition route of CGP to gain their 10% holding providing that this is discussed with the SOLG board.

Point Two - BHP agree not to attempt a hostile takeover, once again all bets are off if another party attempts a takeover.

Point Three - Should BHP decide to walk away they have to offer first refusal to SOLG.

Nick is the headmaster here!