Member Info for rcgl2

Of course the FNV deal is going ahead... look in the NSR agreement itself, it already envisages that there could be delays in satisfying the site visit condition. Check the proviso below... in any event within 60 days of the termination of all travel restrictions and the lifting of Canadian and Australian travel advisories. Ecuador is still under a state of emergency and Canada and Australia are still advising against all but essential travel. Therefore it is still within the envisaged timeline of the NSR agreement for completing the confirmatory due diligence. I don't take the fact the deal hasn't been finalised as meaning that it isn't happening.

In the case of the condition set forth in Section 7.4(c), the Holder shall take all commercially
reasonable steps to complete its confirmatory due diligence within 30 days, and in any event
within 60 days, from the earlier of (a) the termination of all COVID-19 travel restrictions
between Canada and Ecuador and Australia and Ecuador, removal of Canadian, Ecuadorian and
Australian public health authority travel advisories and termination of the mobility restrictions
ordered by Ecuadorean authorities through the State of Emergency Decree (Estado de
Excepción) dated March 16, 2020; and (b) completion of the Holder’s site visit(s) referred to in
the sentences below; provided that free access to the Property and the other areas referred to in
Section 7.4(c) is available to the Holder and its representatives and consultants (the last day of
such 60-day period being, the “Diligence Completion Date”). In connection with the Holder’s
confirmatory due diligence and with the intention of expediting same, prior to the lifting of the
restrictions referred to above, the SolGold Parties shall use commercially reasonable efforts (and
the Holder shall reasonably cooperate therewith) to arrange transportation solutions, at the
expense of the SolGold Parties (provided however if all conditions set forth in Section 7.4 are
not satisfied or waived by the Holder and the Closing does not occur then such expenses shall be
at the expense of the Holder), to facilitate the Holder’s travel to and within Ecuador and to
facilitate access to the Property (including providing appropriate health and safety measures to
address to the satisfaction of the Holder the risks of COVID-19 to the personnel of the Holder
and its representatives and consultants). If such travel and mobility restrictions continue for an
extended period of time, the Holder shall, without limiting the foregoing and Section 7.4(c), use
its commercially reasonable efforts to advance its due diligence review using resources which
are already in Ecuador or other reasonably available means.

"One can only assume that BoA took a slice in the 21.5p placing lol!"

Well if you look at the Institutional Shareholders section on the FT tearsheet on Solg, on the Movers tab, you can see that Merrill Lynch, Pierce, Fenner & Smith recently acquired 933k shares. Impossible to tell if this is on behalf of individuals or managed institutional... but nice to see Solg is at least on the radar of the big wealth/investment management shops.

Obvs not BofA's own account because prop trading is no longer allowed.

KB007 thanks, great link. That piece should be required reading for this board.

It's an odd state of affairs if a company can't raise $2.7bn when it's sitting on a literal goldmine, and yet there are multiple "tech" companies out there who are able to raise tens of billions when they have never made a profit and have no clear path to profitability.

Yes some of the stockbrokers are holding as nominees for individual investors and not own account, therefore wouldn't be declared as material holders I assume. Minor discrepancies such as 101% probably just rounding errors.

Earthling, at risk of sounding like I'm obsessed with it, look at the Lassonde curve and read the numerous articles about it that predict exactly that. The value of an asset as it goes from exploration to discovery to financing to production will go up and down at various points. It's highly predictable that the price will have come down off its highs as Solg goes through the unglamorous stages of PFS, DFS, financing etc, all of which carry risk. Solg has no income, it's not producing anything yet, you can't expect its SP to just go up in a straight line. You can have all the gold in the world in the ground, if you can't sort out finance to extract it you won't be able to realise the value.

Obviously the below is biased in Solg's favour because it's from the Reasons to Accept the Offer section of their offering circular, but they set their stall out fairly clearly. I don't think NM is ruling out a "potential future transaction for control of the Alpala Project", he just wants to achieve maximum value for it and not see it slip through his fingers for a bargain price.

"With significant investments from Newcrest, BHP as well as the financing announced by Franco-Nevada, it is clear that, to date, the industry majors have elected to gain exposure to the Alpala Project through SolGold and not Cornerstone. SolGold believes that this outcome stems from the fact that industry majors are less interested in acquiring a minority, non-operating stake in an asset such as the Alpala Project. As such, SolGold sees substantial benefit to holders of Cornerstone Shares in consolidating the ownership of the Alpala Project into one entity, so that shareholders of both companies are best placed to benefit in a potential future transaction for control of the Alpala Project. In the event of no such potential future transaction, Cornerstone Shareholders risk being required to fund their share of development costs, which would be challenging for Cornerstone Shareholders under the current structure and agreement between SolGold and Cornerstone."

Agreed, that "for sale sign" comment literally sums up the difference between Solg's and CGP's strategies right now.

From the Govt website: On 14 August, President Moreno renewed the state of emergency for a further 30 days. It will now remain in force until 12 September.

Bearing in mind that Ecuador has been, and continues to be, in a state of emergency due to Covid. I doubt it's as easy as just telling the drill rig operators and PFS geologists to put a mask on and wash their hands... Putting aside any prior delays, I think stretched timelines in 2020 are understandable.

Not trying to be a party pooper, because obviously I'd love some great news of the RNSable variety... But don't you think part of the point of these webinars is to sell the current news to potential investors who aren't yet invested, rather than just to satisfy the likes of us who are already fully aware of every last detail?

Solg could say that they've already got plenty of great information to encourage new investors to get in (Alpala, PFS due, FNV, end of standstill, other tenements being drilled etc etc).

Redknight, yes their liquidity is pitiful. I was actually wondering last week when the CGP share price started to motor, if the real reason was not leaked news or insider buying but just the more mundane reality that volumes are so low it only took a couple of moderately sized buys to suddenly launch the price up and get it going.

There was that paid-for gold newsletter thing that came out around that time. Whilst it looked pretty unsophisticated to me and was clearly just an advert, I wouldn't be surprised if there is a certain type of Canadian amateur investor who subscribes to those sorts of things and might call up their stockbroker to place an order on the back of it. I feel like Canadians buy junior miners in the same way UK retail investors hoover up VOD and BT.

Sporty, don't hold back, I for one am keen to read all articles related to Solg, mining, PMs, copper generally as it all feeds into the assessment of Solg's potential value.

Relax, I'm not even saying that OT is a bad example for Alpala anyway. The point of my original post was that when people are moaning that 1) they have been invested here for 10 years and still haven't made millions and 2) the SP is currently half what it was at its peak, then they should look at the Lassonde Curve because in fact Solg is right where it should be at this point isn't it. We are in the orphan period, where speculative excitement over the discovery has died down, and the various feasibility studies and financing need to be sorted. That is a stage that can take several years. But provided that phase is successfully navigated, look where the Lassonde curve goes next - upwards!

The point of posting the link was that you could see the current Solg situation as being exactly what you would expect it to be on the journey from discovery to mining. And also, irrespective of the cost overruns and challenges at OT that Rio is facing, look at the IVN/TRQ share price... as I said, it multiplied up several fold, declined from peak substantially a couple of times, but eventually rocketed up to much greater heights once it went to development. Guess the lesson is, get out once the price goes through the roof, or you could end up crashing back down again. Which I think was Luke's point and not necessarily a bad point to make.

The speculation and streams of consciousness are exactly why I come here!

If I wanted a dispassionate factual summary of the situation I would just look at the share price.

Because 95% of people here CBA to do the opinion thing here every time they post?

Hi Miagi - on the one hand, true. And I am not saying that it is a direct comparison with Alpala but rather that it is an example of how things can go. Initial capex for Oyu Tolgoi was estimated $4.6bn but by 2013 had gone up to $10bn apparently.

Yes it's easy to say "but our capex at Alpala is a mere $2.7bn"... but do you think when Rio got the $4.6bn figure for Oyu they said "oh dear, this is a completely unrealistic figure that cannot possibly be accurate, and is likely to more than double due to all sorts of unknown unknowns that are bound to crop up along the way".

The point is, just because you have a figure from the FS and a plan, you can't just assume everything will go swimmingly can you. There are massive risks in taking the mine to construction. Which is why Solg needs to weigh up whether a very decent offer sometime in the next 6 months (if it comes) might actually be the better option for shareholders than take on much more risk over the next 5 years in the hope of getting it to production.

2Luke - yes interesting potential parallels with Solg? I guess it's hard to judge how low the SP would have gone at the end of the orphan stage if it hadn't been for the GFC. The SP went off a cliff at the end of 2008, but it had already dropped quite a lot from the previous peak before the GFC hit.

IVN/TRQ SP movements 2000 - 2008 not that dissimilar to Solg over the last few years, from low price to a couple of multi-bag highs, but each time back down again as the excitement of one phase fades and the costs and efforts of the next phase on the path to development manifest themselves? Guess that's why the Lassonde curve is a thing.

Also they got basically taken over by Rio Tinto and wouldn't have been able to finance and develop the mine without them.

https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/

Worth bearing this in mind. Particularly when people get impatient and think NM is being slow at everything or the SP should be on some sort of steady uptrend year in year out... Look at the Oyu Tolgoi example and the timelines involved.

I think the governance stuff is all good. Remember the mining industry generally is seen as pretty dodgy in terms of governance, and the junior mining and exploration sector is often the wild west. The fact Solg is getting its house in order is a good sign, as they transition from explorer to producer (regardless of whether they complete the transition or get taken out before). Necessary changes.

OK well, if you want to believe that's the correct interpretation of the documents, so be it. I'm not going to bother writing out why it's incorrect because it clearly won't make any difference. Everyone here can take their view as to what the situation is.

I've kind of lost track of why we are even having this discussion to be honest.