RE: Berry street capital raise solgold concerns in open letter12 Oct 2021 18:24
Berry Street Capital Management LLP said Tuesday that it has concerns regarding SolGold PLC, which it published in an open letter to encourage investors to share their views.
The investment management company, which says it holds a position in the gold miner on behalf of clients and funds it manages, said it had two main concerns.
The first is that the pre-feasability study on the Alpala copper-gold project in northern Ecuador should be published as soon as possible, enabling SolGold to raise new capital at more favorable levels to finance operations going forward.
The second concern lies with Nonexecutive Director Nick Mather, who retired as chief executive of the company in April but remains on the board together with the same members from his tenure. Berry said steps should be taken to ensure the board has improved independence and technical expertise.
SolGold wasn't immediately available for comment.
"We believe the points we have raised should be addressed and resolved imminently to ensure SolGold PLC can prosper and move away from being a pre-revenue exploration company to becoming, ultimately, a fully operational mining production business attracting a wider investor base," Berry said.
Shares in SolGold in London at 1306 GMT were down 0.65 pence, or 2.4%, at 27.0 pence.