Member Info for Strider4

NM most definitely has our best interests at heart...

Interestingly there are 50 billion convertible loan notes listed on the DGR share registry, compared to 613 million shares. Anyone know what that's about? Looks like a huge red flag for that company.

Answering my own question...he owns 7.9% (assuming the Mather Foundation is his!) of DGR Global, which equates to an additional 0.87% of SOLG.

So, that's 5.74% ownership in total, plus a gazillion options that could potentially double it in the final reckoning.

And that's not including the whatever % (anyone know?) he owns of DGR Global, which has an 11% stake in SOLG.

Plus a gazillion options at exercise friendly prices...

It looks like the LOI requirement to complete a BFS within 18 months of upping their stake to 85% was dropped a few months later in the definitive agreement, which just states that SOLG would be tasked with progressing the project towards bankable feasibility, with a cap of $20 million. I assume that expenditure beyond the $20 million has then been pro-rata, meaning that Cornerstone has a fairly healthy $15odd million debt to SOLG now, and counting.

24 July 2012 (it's quite clear that the agreement is for the 5000 ha Cascabel property - unless there's some fine print in there somewhere that magics their claim up to a 20k ha area then I think Cornerstone is BSing):

"SolGold Plc ("SolGold") (AIM code: SOLG) and Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announce that they have signed a definitive option agreement finalizing the terms of an option/joint venture arrangement for Cornerstone's 100% owned 5,000 hectare Cascabel gold-copper-silver property in northern Ecuador and replacing their letter of intent announced on April 10, 2012."

24 July 2012 (note that by 25/02/14 SOLG had already spent $6.3 mil on the Cascabel project, so they hit the $7.8million well ahead of schedule):

"Solomon Gold may acquire up to 85% of the Cascabel project through an earn-in for an initial 65% interest in the Cascabel property by making a series of private placements in Cornerstone totaling CAD$850,000, and spending US$7.8 million on exploration over 4 years (including US$800,000 in the first year if drilling commences), and an additional 20%, (taking its interest to 85%) by funding further work towards completion of a bankable feasibility study, capped at an expenditure by SolGold of US$20 million."

Feb 25 2014:
"85% Ownership of ENSA

SolGold Managing Director Alan Martin and Cornerstone Capital Resources President and CEO Brooke Macdonald met overnight in Quito, Ecuador to agree, execute and exchange the formal documentation associated with SolGold's election to move to an 85% ownership position of ENSA, an Ecuadorean registered company, which holds 100% of the Cascabel copper-gold porphyry project.

In accordance with the agreement, SolGold has paid Cornerstone CAD$250,000 as a subscription for CAD250,000 worth of Cornerstone shares, and will allot Cornerstone CAD100,000 worth of SolGold shares, both at agreed volume weighted average prices.

Following the completion of the share issue by Cornerstone, SolGold will own approximately 21 million Cornerstone shares (approximately 13%) with a current market value of approximately $2.6 million. SolGold's expenditure on the Cascabel Project has to date cost approximately $6.3 million, including all payments and capital subscriptions made to Cornerstone."

Be good to get some clarity about that 5km zone thing - be a shame if Cornerstone had 15% of BN. Somehow I think it's BS (reference has only ever been to Cascabel previously). But even if it does end up being the case, it's not the end of the world.

Ref them casting doubts about compliance issues, as I said, no doubt BHP's lawyers did their very basic due diligence - it's just the basics.

Credit to our very own bottom - I like the imagery.

I think it all comes down to why has Nick thrown it? He knows the chumps at Cornerstone well, so he would have known exactly how they would react...Nick's a canny player, so it'll be interesting to see what his plan is here.

Ref those spurious claims intimating that SOLG might not be entitled to it's 85% share of Cascabel - oops looks like the biggest miner in the world didn't do it's basic due diligence...hmm not likely.

Shipright - "where do you think the funds will come from"
It's a deal in shares...no funds required!

Da m it Addicknt - you've seen through to the truth of it.

IH - you've summed it up in a nutshell. PE of 5 is run-of-the-mill in this market, growth appears to have slowed significantly and significant CAPEX is required this year (internally funded or cap in hand - Fortune would be sensible to take advantage of this mcap).

Long-term this still looks dandy of course, but time is money. I'll continue to follow the story here but with the threat of a placing and the chart starting to look decidely shaky (short-term), I'll sit on the sidelines for now. Toodlepips.

You're welcome FSJ - it was nice to catch up with you. Can't see a lot happening here for a while so the board is again yours! Enjoy.

Looks like the chart is still looking rather healthy tonight after a 35.75p close...oops.

GB - there was no luck involved - it was chart based. And I didn't feel lucky at the time (still don't), as I geniunely hoped for that breakout above 40p. Wasn't to be.

As for paying a higher price in 6 months time - maybe, maybe not. I'll wait. And for a price higher than 36p - keep dreaming - HUM would have to pull a few rabbits out of the hat. I'd rather pay more and see the substantial risk reduced than jump on now, pretty much blind. There are ALWAYS opportunities aplenty in the stock market.

Bzup - I doubt you could tell me much about CNR that I don't know. I was invested there for 5 years. JM - that genius has bought chunks at much, much higher prices than 25p. So what? Ross Beatty has gone quiet...they may not have problems bringing in cash but JM likes a good discount for his money - a raise at 20p then?

And SOLG - let's not exaggerate - "the chart is going to look very negative tonight". Stand back, take a breath, take another look at CNR's chart, and tell me which one is negative.

Bzup - ref CNR - lol good one. Going into early production are they? I'll believe that when I see it. The chart is looking decidedly iffy. And yes cash is king. They're running pretty low on it at the moment aren't they?

And back to SOLG - so I should have sold for the bid at 36.5p and bought back at 36p for a half pence? That kind of manouvering in this kind of share and by a PI is amateur. As has become clear, and as suggested by Addicknt, NM must have known the offer would be rejected...this is the kind of thing that he excels at - what is he up to?

Spot on Addicknt. Has he done it to draw them into a strong reaction? To what end?

CGP - sound like a load of sour grapes. They're hacked off that they let the majority of one of the best finds in a decade go for a song. Bell ends.

SOLG have been saying 100% owned BN in numerous presentations if I remember correctly and CGP wait only until now to attempt to refute it?!

Bzup - lol. How's CNR doing?