Strategic review...17 Apr 2023 19:53
It was quite clear from Bob's aggressive comments last October that he expected a quick sale.
Probably also, that an attractive price would be paid, either by the Chinese paying top dollar or a Chinese bid stimulating competition, similar to Noront.
The unacceptable incompetence and delays in producing the Prospectus had a downside in losing momentum for a sale, but a potential upside in giving more time for prospective bidders to review the opportunity and how much it is worth.
But now it seems another problem (or opportunity, depending on which way you look at it) is the other 70 plus prospects, aside from Cascabel.
Problem, because prospective bidderds may not want the complications of dealing with, developing or disposing of those other prospects, whether it is the 'small' projects or the sexy ones.
Some of us on here have always assumed that the tax consequences of selling off the Cascabel project militated against such a sale and Nick has previously intimated as much.
However, it seems to me that those consequences may be mitigated substantially by Cascabel now being 100% owned.
Furthermore, SOLG has $150m of accumulated losses, even before any 2023 losses. Add to that CGP accumulated losses of $89.6CDN or $67USD
Finally, Lasso is mad keen that Alpala should be producing in 2025...
So maybe a rising option would be selling Cascabel (i.e. ENSA) to, say the Chinese, banking the proceeds and embarking on selling some or proving up some of the other exciting prospects...
After all , as they said in February:
"SolGold's team has the capacity to perform in-house at a significantly lower cost, allowing room for capital to be allocated to Cascabel and other high-priority targets to benefit all stakeholders."
And in November:
"We will also focus on advancing our highest priority exploration targets within our large exploration portfolio in Ecuador using our proven methodology. "
And of course October:
Β· a spin-out of assets, other than the Cascabel Project, to all shareholders of the Combined Group;
Β· the direct or indirect acquisition of an interest in ENSA and/or the Cascabel Project howsoever effected; or
Β· any other transaction or series of related transactions as may be agreed to between the Parties.