RE: Squeaky bum time for shorts! Funding or Takeover! Bring on either!5 Jul 2024 18:23
Jack’s most recent fantasy story, unfortunately for jack, despite a conference call with Scott days earlier the company decided to make him look the fool everyone knows he is but issuing an rns confirming where the 10m came from. Even after Addicknt uncovered the charge at companies house poor old Jack refused to accept the reality. Just for a giggle here is poor old jack’s fiction
JackSvoronos
Posted in: SOLG
Posts: 74
Price: 9.14
No Opinion
I believe the $10m loan relates to a BHP exclusivity period22 Jun 2024 09:57
Facts
1. Solgold has been working on the non-dilutive current funding package for two years.
2. Solgold made a $3,2B investment commitment to Ecuador in April. $3,2B reflects the NPV value of Cascabel.
3. It has recently been confirmed that a significant portion of the required capex ($1,55b) can be secured in the form of non-dilutive funding.
4. Solgolds next proposed funding package will be two parts, covering Cascabel and regionals.
5. DGR has entered into an expensive loan arrangement which they have used their Solgold holding as collateral, with the loan to be repaid later this year.
6. Scott has a very good relationship with BHP and Newmont. This has been confirmed as they both voted in his favour at last December’s AGM.
Some questions and assumptions:
1. Solgold has always shared any proposed RNS’s with their strategic investors (BHP/NEW/JIANGXI) before releasing it to the market in order to seek comment and or allow them to provide their thoughts before it is released to market.
2. In this instance, if Solgold had circulated a pre-release RNS to our strategic investors in early May that a) entailed a major non-dilutive funding package for Cascabel and b) a separate package for the regional exploration plans, would this force the hand of either BHP or Newmont.
3. As BHP intends to expand its global copper resources, would BHP try to pause the proposed release of the Funding RNS, and ask Solgold 'what do they need to provide as a superior alternative'.
4. Would it be deemed fair value if Solgold replied and said that a figure equivalent to the NPV of Cascabel would be a good starting point (UDS$3,2B / £2,528B @ 3B share float = 84p).
My bet is the following:
1. BHP was the group that provided the loan to Solgold on the 14 May in return for an exclusivity period to negotiate a takeover within say an 8 week period. BHP did not want any significant non-dilutive package shared to the market.
2. There are no repayment terms associated with the loan, as BHP intends to conclude the deal, hence Solgold are reluctant to share the loan details with the market.
3. Solgold informed Newmont shortly after regarding the exclusivity period secured by BHP.
4. This has then triggered Tom Palmer (Newmont) to reach out to BHP (per the Sydney Morning Herald article released on 6 June) in order to explore whether BHP would be open to developing their extensive global copper interests
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