Good options moving forward6 Nov 2021 13:03
one option to consider that could be easily possible to prevent a slow dilutive BHP takeover of Solgold would be take advantage of the now Apparently friendly? constructive relationship with CGP.
It is clear Cornerstone group want a sale of their involvement of Cascabel/ENSA, they have made these noises for a while, and although Solgold have right of first refusal on their 15% share of ENSA, we could graciously sidestep that and allow Cornerstone to sell their stake to a third major, Rio or Barrick for example. This would enable a Third major to immediately get a tighter grip on Cascabel than BHP currently have, leaving Solgold free to enter in to negotiations with said new major with regard to funding or joint venturing Cascabel to production. BHP would go from pole position, to only being able to watch from the sides, as Solg can progress, without needing to beg for further dilutive funding from them.
The Ecuador government would be happy as the third major would have the deep pockets and firepower to speed up the process to Production, and the only option BHP would be left with, is to commit to a buy out? Or be left with just 14.whatever% of 85% of Cascabel or whatever stake Solg remain hold of with after a joint venture with said third major.
Maybe why Irwin seems relaxed about it all at the moment, and suggested if BHP don’t make a move soon they could lose out.
Obviously I am not aware if that would be possible with the legal small print in the contracts regarding ENSA etc, but that would be nice bloody nose delivered to BHP and indeed a kick in gonads for good measure..
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