Member Info for theiceberg

https://www.afr.com/companies/mining/solgold-now-a-tier-one-copper-discovery-20181121-h185c9

Afr has always been positive or negative solg depending on newcrests position.....

Mr Schodde said Alpala, located in northern Ecuador, easily met his criteria for "tier one" status.

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"As part of my job I maintain a database of over 58,000 mineral deposits of all types around the world and 304 of these are classified as being 'tier one' so they are very rare and special by definition," he told The Australian Financial Review.

Mr Schodde said only 47 of those 304 top tier assets had copper as their primary metal.

"In other words Alpala has joined a very elite group of deposits, which includes Escondida, Olympic Dam and Grasberg," he said.

"In practice only one or two 'tier one' deposits are found in the world each year.

Newcrest have been vocal that they want more drilling, another mre they think the core needs better definition and they have their plate full at the moment. BHP newcrest would want their own designs changes etc. Which will add time. Biggerr companies also take longer to do things .
BHP has a bad operator image in the region
Why were would Ecuador want a major that they can't control in anyway who is ready with international arbitration et c who would be a political headache in control of the biggest amount of licenses and the biggest mine?
BHP aren't explorers so they will sit on the licenses. Bhp AA Rio et c are famous for sitting on productive licenses until it suits them to develop.
They don't have a good reputation for employing locals.
The list is very big.
Solg are perfect for them and if they can raise the funds to get this to production would be their preferred choice by a country mile

Bell potter are one of the biggest holders of PIs in Australia. Big in the UK as well. Fidelity et c these are not individual people o r single companies . It's like HL in this country. They won't vote on block for anything.r
The market screened figures are highly inaccurate as well, known for double counting..i.e if CGP have their shares in a fidelity crest account then those shares 're the list would show up as CGP and fidelity as they have No way of knowing.

're BHP. I am firmly of the strongest opinion that Ecuador would not want BHP being the largest owner of licenses in ecuador along with the biggest potential mines...
They want this in production yesterday and newcrest or BHP would push it back to 2028 at the earliest imo. Also all the other reasons mentioned.

TOS if bhp bids for Solg and is acceptable then Solg no longer exists. It’s shares are not traded it has no legal entity. All of this passes to bhp. Ecuador would have to be unique in not having to approve the transfer of ownership and licenses from a resource from one foreign company to another.

The final nail in the coffin of a hostile is that it needs to be approved by the Ecuadorian govt. If solg can demonstrate conditional finance why would they approve a hostile transfer of solg and it's licenses to a major which would want to re evaluate the design delay everything not progress regionals at the speed of solg and likely not employe as many Ecuadorian s

I really can't see how a hostile would be possible with or without cgp.

're Nick's percentage it will be more than the bod % plus dgr plus tenstar plus warrants plus a few other friendlies that we don't know about.

This all highly irrelevant anyway..
For arguments sake solg could give 15-20% of ensa or solg to Franco or Barrick on the same condition as BHP invested in maybe a veg with board until 2022 and they can't increase their holdings etc. Such a move would really force any hostile bid to be approved by the boars.
There are many tactics available to Nick and the solg board as citi are certainly advising them on.

're the cgp the market has had time to respond and answer is that it believes the solg bid is about right, as laughable as it might be...if the market though the solg bid would lead to another one then the price would be much higher than it is now...The price isn't even at the solg bid level, which if anything indicates that it will be turned down and the cgp price will plummet to $2 or so...

They will be holding the shares in nominee accounts i.e. They don't own the shades , funds, hnw , and PIs own the shares but the shares are in these crest accounts.

I agree with this copper, The regionals such as target 15 are near surface, they can speed through some drilling to indicated, maybe a smallish 200-300m capex project that could be self funded with a small royalty and debt, etc and then producing by 2024 is certainly possible. whether that's copper or gold as per Blanca is open to discussion. per gold tends to have a lower capex and blanca is equally close to road, water and power like Cascabel.

I wrote it and meant it, it isn't rocket science. Building PCD mines has taken place over the last 50 years hundreds of times. The concentrator technology, the crushing, the separation etc is all pretty standard. the main variables are the power and water supply, transport, inclines, tailings etc. There is the added factor of black caving, but this is becoming more and more standard. There are far more experts in this kind of mine development than rocket science and SOLG have hired some and will no doubt hire many more if this goes to production.

Re finance. SOLG have been open that a very big chunk of of the financing will come from streaming deals, there are also other royalty details, bonds etc yes some equity but not for the next 2 years. If construction has problems then it all depends on the problems, the likes of Nemaska have had problems have seen lots of dilution but that's the far far exteme. Its mostly down to the relatively new techniques being deployed to get the required grades(hard rock lithium is still newish for large scale battery grade concentrate). However for more conventional mines, you have far more possibilities, for something like Cascabel they will be lining up to finish any extra funding imo, probably by straight forward debt.

Is lower than pathetic atm 18 trades in the first two hours...something tells me CGP might have stopped selling.

Red, nick has ruled it out, but Red cloud and their experience writers haven't so I am open to the possibility...

Tt
Mine's do fail in construction but it's nearly always due to a shoddy dfs, a resource that wasn't correctly understood , a corrupt bod or financing issues. Or political issues.
Good quality DFS that are funded by good quality companies for tried and tested products i.e not lithium rare earth etc. Do not fail once finance is agreed the vast majority of the time imo.

TBTT, again the devil is in the detail re mine construction, that's what the DFS is all about, it will plan the mine to the nth degree, the dimensions of the slope, the size of the equipment, even where to source the equip from, the contracts for the transport of concentrate etc.
Franco have done their Due Dili, and think that SOLG are capable of creating the mine, otherwise they wouldn't be investing the money for the royalty.
A mine isn't rocket science.

TBTT, not really this idea that in Oct BHP will bid for company isn't based on any fact. Newcrest can bid for CGP now, but it isn't. If the market thought that Newcrest or BHP would bid for the company, or that SOLG's offer was too low and a higher offer was coming, then the shareprice would be higher, a lot higher, particularly for a low liquidity share on TSX V.
If Warren really thought this was the case, why has he been selling his CGP shares in the $2-3 range?
For CGP shareholders the facts are clear.
SOLG have made an offer.
When the DFS is produced for Cascabel some pretty strong liabilities become real.
The regional exploration that CGP is doing this year, is nothing when compared to SOLG's.
The only think the Market is currently assigning meaningful value to for CGP are its SOLG shares.

The response from CGP is already well known, they will talk about copper and gold prices and how this values their shares of the NPV for cascabel, they will talk about SOLG's share structure with DGR and tenstar, they will talk about new potential bids. But the truth is the market isn't valuing CGP's holding at even the 15% of SOLG's current SP valuation Pro rata.

I agree Quady,
The regionals are key, CGP don't have a % of these, they only have the shares in SOLG to benefit from them. CGP have been selling these and if the regionals are fantastic, it will be a kin to CGP selling its share in a gold mine for coppers. One reason why as a past CGP holder I was really cross with the amount of shares they did sell.
It was essential for Nick to get the regional exploration, drilling not just trench work, underway now, which made the share issue essential to fund it, equally the Franco deal was essential to get to PFS prior mid Oct and prove we are funded to DFS.
To be honest everything that Nick has done this year, has been essential and essential with the timing as well. Covid was a bit of a bugger, but nothing anybody could do about that.

My take away from the redcloud piece is there thought that Alpala is the likely sale, Solg itself is an after thought.
Maybe.
I am open to anything to be honest.
I think SOLG's regionals are good enough to stand on their own feet and be company making.
I think selling Alpala would bring in way more than the current MCAP.
I think that SOLG itself being taken over would be higher than any SP reached in the last 7 years.
I think that SOLG announcing funding for Alpala production and using this to become a producer with Cascabel would take the SP far higher than today.
So I am happy :)

I actually agree with you Tos it five fails into the point I made, that CGPs 15% of ensa doesn't even grant it permission to set foot on the mine site, let alone carry out Franco like due dilly.

Just a reminder as per the document yesterday the 15% ensa is debt carried and has no legal power...this is really important it has no legal power...it can't force anything. Ensa isn't a democracy the only thing it gets it money, and then only once all debt is paid and even then it's only when solg wants ensa to pay a divi.
It is only of value really if you have the rest of ensa. No major will want to be at the mercy of solg in this position . By closing CGP down until mid oct. It means if a bid for CGP were to come in after that time it would be mid Nov at the earliest before it can be completed.
This is a distraction but a needed one. Now CGP can stew , we can progress a conditional funding packing get the PFS done, get drill visuals and lab results and concentrate on that. CGP know what their position is we know what the position is and things can move forward.

This is what I was trying to say.
https://www.cms-lawnow.com/ealerts/2017/12/asset-sales-in-takeovers-code-is-tightened-up
Certainly in the UK company's can't\shouldn't sell of core assets once a formal bid has been announced.
Even in canada I can't see CGP being allowed to sell much more.