Member Info for mattlilly

Under an offtake mining agreement, a buyer or offtaker commits to purchase a specified quantity or portion of a seller’s future mining output. Offtake mining agreements run for varying lengths, including spot, short-term, and long-term. Under a spot contract, the purchase price is a one-time price that the buyer and seller agree on. Contract length varies but can be as long as 30 years.

An offtake mining agreement offers various benefits. From a seller’s perspective, it guarantees revenue from the sale of output, which can be a key determinant when trying to acquire project financing. The buyer benefits from the guaranteed receipt of a specific amount of output over a specified time frame.

An Expression of Interest (EOI) is a formal document prepared by a buyer for a seller, demonstrating the former’s willingness, ability, and a price range for purchasing the latter’s business, asset, or security.

Schlemiel...you've just hit on why the SP is 8.7p (apart from it being held down...)

But we still have c$10 million, which funds operations for 5 months at $2 million a month...

And there is non dilutive funding coming...

You're right to point out that this isnt SXX...they were mining polyhalite, not even potash...

But they couldnt raise the £500 million...even with convertibles...

But SOLG already has offtake offers to more than fund Cascabel, from just the first few years of production...

Which means that say another 0.5% royalty for $50 million would be a walk in the park...two years funding...or more...

And when the non dilutive funding is announced you do not want to be out of this share...

If we get that far...

There are between 30 and 40 parties now in the dataroom...copper has broken out and there us a large smelter and output gap looming...

But gold is going bananas...

So with the second biggest Tier 1 copper prospect in the world, how long before a copper (Jiangxi) or gold (Barrick) or coppef/gold miner makes the first move.

To remind.when Wyloo embarked on their takeover battle for Noront they had 37.5% of the shares. And the price went from 25 to 110 in 8 months...

Nobody at SOLG has more than 10%...

And ask yourself, why have Newmont walked away from Havieron, but stayed AG Solgold...?

Part 3

Page 235 of PFS3...

And why hasn't it dawned on the market...?

Especially with gold and copper surging...the assumed prices in PFS3 are $3.80 for copper and $1700 for gold

Cascabel alone is now worth $8billion more than PFS3 ($2.32bn copper; $4.9bn gold; $0.8bn silver), in the ground...

But what about P235...?

"SolGold has to date received ten qualifying Expressions of Interest..."

"SolGold has also received material offers of funding in exchange for offtake from a number of traders...."

SOLG has received offtake offers for the first unknown number of years of production that amount to MORE THAN the total CAPEX for Cascabel...

So lets say $1.6 billion...

So if those conditional offers were signed tomorrow, why wouldn't SOLG immediately be worth $1.6 billion, or £1.2billion...

Or 40p/share...?

But the after tax NPV of Cascabel is $3.2 billion so if the mine was fully funded by offtake agreements...and that was at $3.80 copper and $1700 gold...

So why wouldn't SOLG be worth at least $3.2 billion, or £2.46 billion...

Or 82 pence per share...

So when will the market filled with doubters wake up to this simple logic?

Or will it take the announcement of conditional offtake agreements sufficient to fund Cascabel...?

Or will it take the first...and subsequent bids...?

Have a good day...

Part 2

Hannam Partners have just valued SOLG at 63p...they're not stupid...

Ingo was a partner in Hannam before he joined SOLG

After PFS2 there was no point in going ahead with the DFS because the North American markets, primarily Canada, were in effect closed to mining finance, especially for a minnow like SOLG, irrespective of how powerful the story was.

To have raised the CAPEX would have meant massive dilution, either by straight equity or convertibles.

Ingo left SOLG when Darryl was in the process of trashing the company...

So what's changed...?

Part 1

On 21 February Jiangxi inked an offtake deal with First Quantum for the delivery of 50,000 tonnes of copper for the first three years of the Kansanshi MIne in Zambia.

Average annual production at Alpala in PFS3 is 123,000 tonnes a year.

In simple maths that grosses up to $1.23 billion for a 3 year deal or $1.64 billion for 4 years.

The CAPEX for Alpala is $1.55 billion

It doesn't matter if the assumptions are too simple...its the principle...

And I haven't even taken account of the average annual production of 277,000 ounces of gold...

Current street value $600 million a year...

On 1 March Jiangxi bought 26 million shares in First Quantum for $212 million...

First Quantum has "vast debts" currently $6.42 billion and rising...

Last night...

I was checking the share price and it was 10p...then it was 21p..then 43p...

And I thought how has this happened...

It was a FOMO feeding frenzy in SOLG shares...

So I thought..its just a dream...

But how could it happen...?

And then it came to me...

Read on...

Dollar dropped like a stone...gold bounced over 3% in 4 hours of trading...more to come...

No vision add...Newco gets £10 million (20% x £50 million) from the sale of 20%...

Inter company loan to the parent, i.e. SOLG, pro tem (because you can't start a drilling program instantly).

£10 million is $13 million...6 months worth of operational cashflow, added to the $10 million SOLG still has left...

Short term cash worries disappear. Share price bounces.

Market value of Green Rock through IPO reappraises the value of SOLG...SP bounces further...

Prospective bidders forced into action...

Final auction closes at £1...job done.

QED

So...gold going bonkers...Copper and silver bounced as well...SOLG set to break 9p tomorrow...?

Addickt...its non dilutive for SOLG because its a 100% subsidiary...

Green Rock Resources might have zero liquidity until IPO funds come in but it weould be floated on the back of Porvenir, Chillanes, Cisne Loja and Timbara...

Oh and BTW I've IPOed a plc from start to finish and been GFD afterwards...I also prepared a prospective £860m IPO...

Https://seekingalpha.com/news/4081522-copper-drops-from-11-month-peak-ubs-says-copper-rally-just-the-beginning?mailingid=34749104&messageid=2900&serial=34749104.14946&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha&utm_term=34749104.14946

Have you ever done an IPO addickt...

We own 100% of Green Rock.

Yes it would need some seedcorn to establish itself and pay the NOMAD and flotation costs but, typically you issue 15/20% of Green Rock shares to the market, lets say for £15 million which then starts tro fund the development progtamme for the projects it owns and from which the parent can be refunded all the inital costs.

It doesn't in any way dilute us as Solgold shareholders, but it puts a value on resources that the market is valuing at a negative amount at present because it is nowhere near even valuing Cascabel at the current share price.

So the three projects can be funded to develop with no cost to us, so that we can focus our spending on everything else.

Oh dear addickt...

Its asn IPO...say Green Rock Resources...you're issuing shares in Green Rock, not Solgold, so its not dilutive...

But it also puts a value on Green Rock, which increases the recognised value of Solgold's total assets

When you do an IPO you raise cash...thats the whole point...

An IPO would produce 'non-dilutive funding' as well as monetisation...

Looking at the corporate structure of SOLG, which includes SIX subsidiaries, any of which could be independently IPOed to 'monetise value' without incurring a taxable event...

The obvious one would be Green Rock Resources (Porvenir)

But after the Blanca Nieves results Carnegie Ridge is a real possibility as both Chical and Rio Amarillo are copper gold prospects.

Cascabel is 100% owned in ENSA which is 100% owned

Porvenir, Chillane, Cisne Loja, Timbara are part of 100% subsidiary Green Rock Resources

Blanca Nieves, Chical, Rio Amarillo are part of 100% subsidiary Carnegie Ridge

Salinas is part of 100% subsidiary Valle Rico

Cisne Victoria, Coangos, Helipuerto are part of 100% subsidiary Cruz del Sol

Bella Maria, Cana Brava, Espejo, Playa Rica, Rio Magadalena and Vetas Grandes are part of 100% subsidiary Cornerstone

Cornerstone also owns 12.5% of Bramaderos together with Sunstone Metals (87.5%). This has a 10 million ounces of gold target...

hxxps://smallcaps.com.au/sunstone-metals-sees-potential-10moz-bramaderos-project-ecuador/

Well said buster...

From time to time I plead for a better Board and things quieten dow for a day or two...

But the problem is that some of the sensible posters on here and those who know better have failed to Filter the troublemakers and...worse still, cannot resist responding to them...

I repeat...this is the worst BB I visit anywhere...

Garbage posts

Arguments

Name calling and abuse, sometimes even reportable comments

Utterly irrelevant topics, including political

One would assume that almost everybody on here is an adult, but I often wonder what would happen if:

They said some of the things to a persons face in a pub or

How disgusted or let down their wife/partner would feel if they saw what was going on.

Sadly a lot is symptomatic of Society at large...faceless, anonymous trolls posting with no fear of comeback...

Thanks again.

Theres a story here and its a hugely positive one, but some people have no patience anyomre and seem to feel the need to fill the vacuum with false, baseless , uninformed or unsubstantiated rubbish...

OK so 53% of the posts I see are green stripes and I have no doubt there are people hiding behind those who regularly insult my well meaning posts...

But it takes me far less time to catch up; I can focuse mainly on useful information or thoughtful opinion and I don't have to read or respond to abuse.

SOLG closed at 9p equivalent...27 of the last 40 trades were at that price

Puzzling.

Hi Swanley

Most of the 'outside' projects have been for sale for 3.4 years now...no takers...and the Cadastre doesn't reopen until 2025...