Member Info for rcgl2

Quadster, just to check, you own 1.2m shares in this at an average of 4.6p? And you already sold off 600,000 for about £200k? Think you can afford to go a little crazy and buy yourself that salmon!

Think the 6.4% is their indirect interest in Alpala, as a result of their Solg shares.

7.6% x Solg's 85% = 6.46%, plus their 15% direct = 21.46%.

So they would still own approx 7.6% Solg to get to that figure.

Hi Red - interesting, do you have the link to that 28 Sept interview again? Cornerstone's latest deck still shows them owning 7.6% of Solg, and is dated 30 Sept. Wondering which is actually accurate.

http://www.cornerstoneresources.com/i/pdf/Presentations_0920_CRICorporate.pdf

Hi ToS - as far as I can see all of the information that has been released in the latest batch of RNSs has been recent developments. Drilling commenced here, drilling about to commence there, first very preliminary drill results hot out of the ground at Porv etc. At the time CGP made those claims about withholding information, most of this couldn't have been released anyway because it hadn't happened.

And also, I think it's a company's prerogative to maintain secrecy around its operations and plans until such time as it deems it to its advantage to release it. Solg's attitude it that they want to release information in such a way as to prevent a takeover or to ensure that any takeover is at a very high price. CGP's argument seems to be that they should just spam out information in order to trigger a takeover at any price. As a 7% shareholder in Solg the more logical aim should be the former rather than the latter, but CGP have the capex funding issue for Alpala so can't afford to wait around.

That 27p UT for GGP was the GDXJ having to buy millions of shares in one go when it was added to the index, which was settled as a massive UT and triggered two extensions as the price was so much higher than the previous price. There wasn't "real" demand at 27p so the next trading day it went back down to the market price again as Ice said.

In Mather (and his finger) we trust.

Still can't quite figure out what NM's motivation was with the CGP offer. Obviously with Citi and other advisers on board the hostile bid would have been carefully considered and potential outcomes modelled out. Considering the CGP response it seems like there are a few possibilities as to what NM expected.

1) He genuinely thinks its a decent offer and did really think that CGP shareholders would accept and it would be successful. Given the almost immediate rejection by the CGP board and allegedly 65% of shareholders, this seems rather unlikely.

2) He knew it would initially be poorly received, but he also knew that he had all this newsflow up his sleeve and he expected the offer to become more and more attractive as the Solg SP rose as we near the end of the offer period. This seems rather optimistic and gives a lot of hostages to fortune, not sure such a gamble would be sensible. Why not wait til SP had already risen and then launch an offer with more chance of success?

3) He never expected the offer to be accepted. He always knew it would be a no. This seems the most likely, but then the question is, why? Is he that confident that CGP will fold in the end and be acquired for $3.5m that this was just a final goodwill gesture to bring them onside and offer them an out? Was he expecting to trigger a counter offer by a third party so as to get a clearer idea of potential acquirers for Solg itself? Was it just a cynical attempt to drain CGP's limited resources, knowing they would have to spend time and professional advisers' fees just to reject an offer than was never going to succeed anyway?

Any other possibilities?

Aren't we pretty much assured of several more drilling updates over the next couple of weeks? And going by what we've had so far, at least some of them are highly likely to be positive. Not so much a leak as just anticipation building ahead of expected news...

Hi Earthling - NCM and BHP own approx 13.6% of Solg each don't they? And CGP owns 7.6% of Solg. So that's just under 35% between them.

Hi Quady

In a share/quota transfer the company continues with its business, contracts, and permits, meaning that the business is not affected. However, in the case of asset transfers, new permits may be required (for example, environmental and operating permits) and this may mean that the business is affected.

Asset transfer = ENSA transfers its assets (licences, staff, equipment, IP etc etc) to a new owner. New permits may be required.

Share transfer = the shares of ENSA are acquired by a new owner. ENSA continues with its business, contracts, and permits, meaning that the business is not affected.

Darren, I know you are a trader, and therefore... you trade. Question for you though, isn't it a massive gamble trying to trade this name now the newsflow has started and now we are entering the crucial October period? When it was rangebound in the 20s I can see it, but aren't you just incurring costs and stress trying to trade this now the drilling results etc are coming in? You'll make more just holding this now won't you?

Quady I looked at Solg's price on TSX yesterday shortly after their open and it was only up by a couple of percent, while the London price was up about 13% at that point. I don't really understand how they mismatch so much.

Guessing Porvenir. NM knows his business and he's excited.

Colonel - exactly which is why it would be a crying shame if Solg got taken out soon at 60-80p, just on the basis of Alpala and a bit of Porvenir. You don't need to wait 5 years for Alpala production to unlock bigger value, they just need a bit of time to get some initial drilling results on a few key prospects and it will be clear what the portfolio really holds.

Haha Z, never knew rcgl1 but I'm sure he or she is out there somewhere...

Zoros - on that note I quite enjoy your constant trolling of the CGP ceo board. However, what I find strange is that although you keep pointing out that CGP will be facing a $400m capex bill after the BFS stage and it is not likely to be able to use its 15% ENSA stake to secure it, as far as I can tell NO ONE has ever answered this question from the CGP viewpoint. There are some pretty well informed posters on that board and yet no one ever seems to even try to explain how the capex funding isn't a major problem for CGP. It's just a wall of silence.

Solg have stated on multiple occasions that CGP cannot use their ENSA stake to secure financing. I've looked at the termsheet governing Solg and CGP's arrangement and it's not clear to me if they can but it does appear to be encumbered so I'm inclined to assume that Solg are correct in this. The only rebuttal to this claim that I have seen so far from CGP is the statement that they can in fact pledge their ENSA stake. No explanation given, just a statement that they can.

None of the posters on the CGP board ever seems to discuss it. No one ever digs out the agreements and explains why it can be pledged. No one even tries to argue as to why they think CGP will be able to raise multiples of its market cap in financing even if it doesn't pledge its ENSA stake as security.

Maybe they think it's immaterial because they will definitely get bought out by a third party before the capex becomes due, but I think it's a pretty big gamble to rely on that. And even if the company knows something none of us do, I still find it odd that none of the PIs who hold CGP seems to address the issue.

There is nothing to suggest that BHP are surprised or annoyed at how things have unfolded to date, which is what CGP are trying to imply by waiting til after 15 Oct for their mythical AGM. At the time BHP did their last placing the company was clear in its ambitions to become a producer, this is not news to BHP. They also have the right to appoint a director to the Solg board. If they were so unhappy with the way Solg was being run the could have installed their nominee to try to steer things differently at board level (presumably in conjunction with the former NCM director). However they didn't. They can't realistically be upset at Solg not wanting to give away more and more of its main asset to them at a low price, which is essentially what NCM were suggesting.

Regarding waiting to see what BHP do, can we assume that majors all have several irons in the fire? Solg is fairly high up on BHP's and NCM's target lists, as evidenced by their stakes, but they will have other options to explore. BHP seems to have the best relationship with Solg and be in pole position. But it's not guaranteed they will take Solg out. Maybe other majors are holding back on bidding to see if BHP does make a move or not because the last thing they want to do is waste their efforts on a bidding war with a very determined BHP, who will most likely win.

Let's say 15 Oct comes and goes, and then BHP makes some other large acquisitions in copper or gold. Maybe other majors will infer that despite liking Solg and keeping the option, in the end BHP decided to pursue other options first. That would give them confidence they could bid with a better chance of being successful if BHP has decided not to keep going for Solg.

If BHP are still keen on Solg, which I think the market is assuming they are, and another major tried to bid against them but ultimately lost, I don't think that works in the other bidder's favour at all. They will have spent large amounts of time and resources on a failed bid, and also by bidding and losing they will have triggered a need for themselves to go and buy something else. The market might think, "well you obviously needed a Tier 1 copper/gold asset, and you just lost out on one, so what are you going to do now? You better go and find one." If that is the case it probably makes their next target a bit harder to obtain, as they start to have an air of desperation about them. Targets can hold out for more knowing that the major failed to get Solg and is under pressure to secure a win to make up for it.

Think NM mentioned the next 10 to 20 years in one of his recent interviews didn't he? :)

Waiting for this PFS is like waiting for the birth of your first child isn't it... You have the due date but you know it could be earlier or later. You've been expecting it for months but it still doesn't seem like it's actually going to happen...