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Earthling,
My answer to your question is No.
BHP and or NCM have to act. But hopefully they understand that Solg is a different animal to GGP.
Explorers find potential concessions and always need financial help to prove them up. GGP don’t have many concessions whereas Solg does. Every clear thinking explorer would like to have a mining giant willing to risk some money to help prove up a concession. The trouble is every time the mining giant feeds some money to the explorer to prove up just ONE concession they demand a % of the ENTIRE company. That may be ok for a company like GGP, but (in my opinion) that’s not ok for Solg. Fortunately Nick understands that hence the deal with FN. He gave away a 1% royalty of one concession in return for $100m. BHP and or NCM would have demanded a % of the whole of Solg. They didn’t get what they wanted and therefore they tried to remove NM.
I have no idea what will happen next, but one thing for sure, BHP and NCM won’t sit by and do nothing.
I wonder who if BHP and NCM were working together to try and oust Nick and if they were both in contact with CGP. It’s clear that CGP will sell out to anyone who’s willing to take on their liabilities but we don’t know if BHP and NCM will work together or against each other.
But hopefully all of the above could become irrelevant if one or more of the other possible candidates who could buy SOLG in its entirety show their hand.
All Nick has tried to do is the opposite to what happened and is still happening to GGP. They don’t even know what they have in the ground yet they have signed away 70% of the company and that figure will increase. Yes exploration companies like SOLG and GGP need companies like BHP and NCM not only to help with initial funding to prove up what’s in the ground but also to generate exposure. But their help comes at a cost, in GGP’s case, disproportionate. BHP and NCM hated the FN deal but what % of SOLG would either of them have demanded for $100m or $150m? The current SP had no effect on the FN deal. But had BHP and/or NCM got their way with increasing their shareholding they would without any doubt have used the current very low SP in their favour. By snubbing BHP and NCM in favour of FN Nick knew his position was at risk, that’s why he asked the ordinary shareholder to support him. Whichever way this goes (and imho SOLG going production is less likely than Trump overturning the US election result) but whilst we are all still awaiting positive drilling results, be happy that we still own a big chunk of the company.
Woody
You say that the three biggest investors have no confidence in Nick. Why do you regard them as investors? CGP only wanted to oust Nick because all they want is a quick sale of Alpala. The sum of Solg is worth far more than just Alpala. Some investor!
As for BHP and NCM, they wanted a load more shares in Solg at current prices - can you tell me honestly that that is in the best interest of an ordinary shareholder? Or does it solely serve their own purpose?
TBTT
Nick’s opponent just tried to do as you described, and failed. So what more could they do if they decided to call an EGM? We’ve just had an AGM. Don’t you think the opponents would have maxed out everything they had to oust Nick? What makes you think they held back some ammunition?
CountTheChickens
Based on SOLG, GGP and HUN prices at any point in 2019 and their respective prices today, the numbers you posted are mathematically impossible unless you day traded GGP. But in that case you could have day traded any share. I for one didn’t say to sell this and buy that. Never have and never will say that. Good luck in whatever you are in but what’s the point of posting made up numbers?
I’m not sewing negativity. Just speaking my mind. Anyone who gets annoyed by my or in fact any posts should consider the following two very simple important points. They apply everyone irrespective of who or what they are invested in.
1. Anyone who decides to part with any amount of money based only reading ANYTHING on ANY share chat board should seek help. That would be worse than gambling money away at the bookies.
2. Never ever fall in love with a share because that’s a very much one way relationship.
Hydrogen that’s a silly analogy. It’s like comparing the building of a detached house compared to building a huge complex overlooking the Thames. Yes it takes longer but it’s altogether on a different scale. As for Solg, other than owning JUST 85% of ENSA they actually own 100% of the rest.
If it’s as good as every holder is hoping for then it’s inconceivable that NCM would take up the option of that last 5%. Otherwise why put the clause in in the first place? I questioned the value of the deal with NCM simply because GGP gave so much away without even knowing what was in the ground. JV/dilution is always inevitable and getting a company like NCM involved is impressive. But I can’t help but think GGP got overexcited and followed their heart and not their brain. Yes the SP is higher than what it would otherwise be, but similarly the SP is now much closer to it’s maximum that perhaps many holders would want to believe.
You are correct in what you write. The problem is though that NCM already own 70% (for relative peanuts) and that figure will increase to 75% before GGP even get to find out how much extra gold and copper there is at Havieron. GGP gave away three quarters of Havieron before they even knew what it was worth. Imagine future drill results doubling or tripling the resource. Who would be the happiest, NCM or GGP shareholders? Getting NCM or the like onboard is a good thing, but not at any cost.
https://www.ft.com/content/ee1c73c7-eee9-4cbd-820b-415e1d30662c
Barrick CEO says :
“There are not a lot around, and so by deduction of course we remain interested in being able to add to our portfolio any tier 1 asset out there,” he said.
https://www.mining.com/web/barrick-ceo-says-african-gold-industry-should-consolidate-further/
Hi all,
Why exactly 82875000 share options? Seems like a calculated number. Estimated annual income in Ecuador is about 450 US per month. Based on say 450 Solgold employees, the employment options equate to £110,000 per employee. Even spread over 3 years that’s £36000 per employee per year for 3 years. Compared to an average annual income of £4100?
I find it interesting that BHP have anti dilution rights for 2 years. Were they aware of this latest granting of employment options when negotiating the increase in their holdings?
For the record, I dearly hope for a complete buy out, lock stock and barrel. That is the only possible way that long term holders can all benefit equally. Selling off prized assets will only create a spiking share price because the money raised pretty much always ends up in the company bank account. So brave holders only have a paper profit.
Good luck everyone.