Member Info for Quady

Good morning Woody, we have roughly between 35-40 million pounds by my calculation.

Good evening Tiger, it was in an interview involving Cornerstone and some other companies. From memory it was exactly the same time, at 1 pm tomorrow.

Evening Gregory1yz, In short yes, as both Solgold and Cornerstone giving presentations at 1 PM tomorrow, so maybe an update on our bid for Cornerstone. Maybe we will get an RNS in the morning.

Best thing for DarrenBuffer, is too filter him. For two reasons.
1:) We know he is talking rubbish.
2:) I have been looking at his postings, and I believe this is a child, so we have to be careful, as none of us want to be guilty of insulting him.

Cheers Copperpot.

Agreed phattrader just over 2 pounds is fair value.

Hello DBW, I thought it was one O'clock. Can anyone confirm, as my email server is down at the moment.

I am surprised that the share price hasn't jumped or fallen today, As NM giving an update tomorrow, and Cornerstone giving an update at the same time. Maybe news hasn't leaked this time, or that it has and nothing has changed at this time. Looking forward to 1 PM tomorrow.

Thank you Jupitermars, excellent follow up, looks like we are progressing. Interesting he answered the question on publication of drilling hole results. ( not a legal requirement ) So he must have had a question around that subject. All the best.

Good afternoon addicknt, just to say, I hope all goes well for you.

Good morning Tiger, I do see, that what you say, could come about. As you say we agree on quite a lot. I think the timing is key. The only party that cannot bid for CGP at the moment is BHP. So if NCM want to bid, they do it now. My understanding is that if NCM bid for CGP, before the Solgold deadline is up, That BHP cannot enter the fray, as they are not released from their standstill agreement. ( someone please correct me if I am wrong ) I think the way this bid has been arranged, means that BHP cannot bid, unless all bids are turned down, and we go past 15th October 2020. If say Newcrest did obtain Cornerstone, I don't believe they would sell, as like all the other interested parties, they would be stake building, and thus may help with a defense strategy in order to stop an outright bid for Solgold, by a bigger predator. What would be interesting is if another company that does not have a stake in Solgold, were to bid for CGP. All the best.

Good afternoon sjn1980, thank you for your comments. I have adjusted for the 7% that CGP own of Solgold. ( it's in the calculation ) The point is that the Cornerstone shares, would not be cancelled, but held in treasury. This would mean, we could raise further funds, when the share price is higher, without issuing any further shares. Also as they would be held by Solgold in Treasury, this is another barrier to takeover, and adds to our defense, as they would not be available, unless the BOD allowed it. I was not aware that we held 5% of CGP, so that was why I missed that. Many thanks.

Good morning phattrader, as I said you may be right. We may get an indication tomorrow. All the best.

Not bidder offer, I meant bid offer.

You may be right phattrader, but the other bidder offer, would have to be above fair value, and assume all the debt, which must be paid after DFS. May I ask why do you think another bidder will bid, under these conditions. Not only do they pony up, money to DFS, but further liabilities for the development of Alpala.

Good morning all, I believe that the Solgold offer for Cornerstone will be accepted.
Here is my reasoning.
The offer buys 32.39 million cornerstone share at 11 Solgold shares per share. This equates to 356.29 million shares, so this is how much we issue.
So we now calculate, why this is attractive to Cornerstone, the answer is , that it is and is not attractive. Here is why.

We issue 356.29 million shares, this takes our total shares in issue from 2.072 billion to 2.43 billion roughly.
So to get the percentage holding after the new issue, the calculation is 0.356.29/2.43*100= 14.66%

So although Cornerstone give up 15% of Alpala they get back 14.66% of Alpala and all other concessions.
With the 7% of Solgold shares held by Cornerstone, they own currently 7% of all concessions and when you add the Alpala part to the percentage of shares, you get ( 0.85*7 ) + 15 = 20.95% of Alpala

So you give up 20.95% in total of Alpala for 14.66% of Alpala through ownership of Solgold shares.
But you gain on future concessions by giving up 7% of Solgolds total concessions, and getting 14.66% of the total of Solgold.

So we are left with two questions.
The first question: Is the reduction in Alpala, worth the more than doubling of their total ownership in Solgold. Some would say not, some would say maybe.

The second question: By accepting this offer, all Cornerstones liabilities are wiped out. Not going to put a figure on this, as we have all come up with different ways and amounts of calculating this, and since we all differ, I am not sure what calculation is correct. But hopefully one thing we can agree on, is it's significant.

In conclusion, I believe the offer will be accepted, because we are offering fair value for Cornerstones holding. As without the debt owed to Solgold calculated in, You could argue that the deal for Cornerstone share holders, was marginally not good, However, once the debt liability is erased, this is an excellent deal for Cornerstone shareholders, and gives more than full value. Hence I do not believe anyone else will bid for Cornerstone, as they would carry the debt Liability after DFS, So they would have to offer above full value, and Carry the debt. Hence why I believe Cornerstone shareholders, will accept the Solgold offer. All the best everyone.

Good afternoon DarrenBuffer, what an amateur thing to say.

Jerry it clearly gives examples in the link, I asked you to read, what is material? You would have to twist the meaning and pull it out of shape, so that it was not able to be seen for what it was. A drill hole, by no stretch of the imagination, can be deemed to be material.

Hi BNC, I take your point, however, if NCM acquire Cornerstone, ( which I don't think will happen ) then that makes Solgolds defence of the company easier to my mind. As my reasoning would be that they wanted a bigger share of the company, and Alpala through ENSA. I don't think they would pursue this course of action, just to sell it on.

Hi BNC. I think that thought has crossed, most peoples minds. It would certainly complicate things even further, and everyone would dig further into their positions. Don't think it will happen, but I suppose the point is, anything can happen. Wednesday looks interesting. All the best.