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I can't paste it. You will need to go to their website
"Since announcing the merger, the SolGold board has acted swiftly to position the combined company on a path that is in the best interest of all shareholders.”
There's the pudding folks. Let's hope it is tasty.
Let's hope it's not Christmas pudding, as I can't stand the stuff. Let's also hope it's not Summer pudding, as that's also garbage.. Unfortunately I'm not aware of the existence of a Spring pudding, but ideally that's when I'd like to be indulging in here ;).
Onwards and upwards as the locals say.
“Since announcing the merger, the SolGold board has acted swiftly to position the combined company on a path that is in the best interest of all shareholders.”
Sorry to sound facetious.... but isn’t this what any decent board should be doing ALL the time? I get that the combined companies may have different strategic goals than the individual ones, but it begs the question what path were we on before this “swift” action?
It says to me, we were on a path to production, and that has clearly changed because the chairman,qnd ceo of cornerstone, warren irwin and Berry Street are all sounding very positive about the whole thing.
It's really worth reading through their circular.
I won't repeat all of the fascinating stuff it contains, but two things stick out: The SR was a condition imposed by CGP on SOLG in order to gain their support for the transaction. Discussions started in July of this year (there's a full timetable of the meetings/discussions)
Monte, the circular gives you all the clues as to which way this is going.
Ok, so we were (allegedly) on a path to production. I always struggled to believe that, but if I’m an Ecuadorean government official responsible for overseeing mining exploration licences, I had a clear project path and timeline, PFS, DFS, mine design, build commence etc. All published on the company website, and all within the timeframe of the existing Cascabel license agreement. Now there’s nothing. Presumably any buyer will have to renegotiate (and possibly restart) the timeline from PFS. Unless and until that happens, the imm we have left on the economic evaluation stage is running out. As another poster likes to say on here...... tick tock.
I understand that any buyer will want their own DFS. but my point is there isn’t a buyer yet. The PEA for Cascabel came out in May 2019. From which point, we had two years to complete an economic evaluation. This can be, and presumably was, extended for a further two years. That gives us until May next year to **** or get off the pot. Do we believe we will be sold before May? I would take a great deal of comfort from a simple RNS outlining the latest position with regard to the Cascabel license. Given it’s our main asset, is that too much to ask? If I’m BHP, I’m already in discussion with government officials about taking over that license on the cheap.
Btw, if they pull out of the deal they will have to pay us $5.2m. There are also plenty of Restrictive Covenants applicable to both parties.
One point worth noting is that it appears the SR hasn't started yet. The Circular implies it's due to start once the deal is completed. This is not quite the impression we were given, but it makes full sense.
Have emailed the company re the license position. Will post any response.
ToS, my take on that is that DC wanted to spend many more millions producing the DFS, whereas CGP didn't. I'm sure it's their belief it would not add any value.
I said it the other day, but I'm convinced DC left because he didn't buy-in to CGP's demand for an SR and additionally their unwillingness to progress the DFS. The only conclusion one can reach is exit.