Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
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Despite the political changes, it seems implausible that it is taking us this long to revise an important yet relatively simple document.
Last September, Middlekoop highlighted a translated Chinese article which claimed that the government had signed a preliminary agreement on Cascabel with "the investor". It was unclear whether this referred to Jiangxi or Solg. The translated piece is here:
https://www.econotimes.com/Solaris-Resources-Warintza-Project-in-Ecuador-Attracts-Global-Attention-Chinese-Investors-in-the-Lead-1667077
Given the thrust of the article is Chinese investors and Jiangxi, I am increasingly leaning towards it being about Jiangxi. What preliminary agreement have we signed? None to my knowledge.
In which case, when negotiating this IPA, why would Solg be doing the heavy lifting, when the terms of the IPA are going to be relevant to the company actually building the mine? Jiangxi probably fancy themselves to negotiate their own terms as they have much more clout than little old Solg.
Moreover, given the 200m odd shortfall in our spending exploring Cascabel, and current cash balance and Mcap, the people on the other side of the table will be asking Solg where are you planning on finding the billions required to build this?
I think the radio silence on how this process is going (we have had meaningless soundbites saying it's going well but absolutely no detail) points towards it being out of our control as the terms are going to be relevant for the entity that develops, builds and mines Cascabel.
We have mothballed the company, we are in an endless strategic review, we have been prioritising drilling targets for nearly a full year now. There is no way I see us owning this project for much longer.
Good post, SM.
One question: If the Chinese have indeed agreed something with the government, surely this is of material relevance to us and would have demanded an announcement?
Add, agree. The article was discussed on here and opinions were mixed on who "the investor" referred to. You could imagine that Chinese press might not be totally au fait with (or give a damn) regards releasing MNPI in local media (over at ALL the Ghanaians have been awful for this) but it's not something we have commented on publicly or clarified.
The Chinese have had issues in the south with the government and indigenous populations, and I've long held that they will want water tight protections in place before making a move here to avoid a (much more costly) repeat.
If Jiangxi are a serious suitor, you'd think they'd want to be privy to the terms before anything is signed, if not negotiating them themselves.
Indeed. But given that at this stage they are merely minority investors, they have no legal position to sign anything. However, if we are actually advancing discussions with them, I'm sure they'd want to be looking over our shoulder at what's being discussed. The key issue being that the agreement must be assignable.
Probably the Chinese government will tell Jiangxi you will do this and like it.
Then at that point is the price high enough for majority of holders to sell?
Add agree they're not going to be signing the document, but they're also not going to be signing anything regarding ownership of Cascabel unless they're happy that their investment will be safe. We have to ensure they are aligned.
I don't think it's totally implausible that we hear news of the IPA alongside and update on how this thing will be built, otherwise the document will be relatively meaningless as no one thinks we can go this alone anymore (and the company have essentially said as much).
Aquinaga - on your point on price and the majority willing to sell - Mather has bet the farm on this now and the clock is ticking. He simply has to get some sort of deal done here and soon. This will focus minds on price/valuation.
SharketMare agree Mather in real trouble over at DGR NEEDS a way out of that and needs a monetising event to stop DGR from collapsing. Their biggest asset a shareholding in Solgold.
This is a massive push in the background to get this shifted PDQ!
Jiangxi IS the Chinese State
Jiangxi Copper Company Limited was formed by parent Jiangxi Copper Corporation, which is owned by the Chinese government, in 1997. Jiangxi Copper Corporation owns 48% of Jiangxi Copper Company Limited.
https://en.wikipedia.org/wiki/Jiangxi_Copper
Per page four of the current company presentation, IPA negotiations are advancing well.
Nothing else to see or say here..
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://wp-solgold-2023.s3.ca-central-1.amazonaws.com/media/2023/09/CORPORATE-PRESENTATION-JAN-2024.pdf
BBG, given that a few weeks ago it became apparent on the Telegram group that you had no idea we were even renegotiating the IPA, forgive me if I take your words of reassurance based upon a vaguity in the latest presentation with a large pinch of salt.
And yet BBG called me a Muppet😆
Pot and kettle comes to mind!!