Mon 19 June 2017 CORPORATE NEWS Backdrop: Solgold has raised...

Mon 19 June 2017

CORPORATE NEWS
Backdrop:
Solgold has raised more funds in the order of US$41 million ahead of its potential entry into TSX, Canada [decision known on Wed 21 June 2017]. This means that Solgold has greater Balance Sheet strength.

US$40 million of this funding has come from Newcrest who now have a 15.45% stake in Solgold instead of 10%.

In theory, Solgold*s potential entry to Canadian TSX listing may mean that they intend to take on the Cascabel project on their own via later placings. This is not uncommon. It is also possible that Solgold could develop the project with a partner/s. This appears norm and is not uncommon.

However, this may also mean that Solgold has a more independent pathway to chose its partner/s if they so choose. The open pit development will be of the more surface expression prospect and the capex is into hundreds of millions in general. It is the underground mining that will require greater funds into billions and forms usually part 2 of the development but by far the greater value. Herein, a partner may be advantageous for obvious reasons.

So, the window is c l o s i n g on the corporate play since Oct 10, 2016 when BHP made an investment proposal to Solgold which was turned down politely.

Newcrest on the other hand has expertise in cave block mining and therefore their participation will be of no surprise.

Today Mon, 19 June 2017, Cornerstone Resources has announced that they have taken 78.12 million shares of Solgold from various parties including Rosseau Asset Management in exchange for 120.8 million Cornerstone Resources shares. Solgold*s total shares in issue is 1.432 billion.

So in effect, Cornerstone now owns some 8%+ of Solgold. Cornerstone Resources does not mention in their announcement of today whether they own any residual shares of Solgold from the past.

Cornerstone own 15% of ENSA while Solgold 85% which is the Ecuadorian co holding the Cascabel licence.

It appears that the exchange of shares in Solgold that Cornerstone obtained today enhances their position.

It would appear that Cornerstone may now be i n p l a y [theory].

By extension, theory wise, so would Solgold be i n p l a y if the price is right as per Nicholas Mather.

Theories must remain theories until news flow. There are always twists to corporate plays or stories and no one story is exactly the same.

Just to give an idea of what is happening. Others in London forums and elsewhere have different ideas of what is happening. So I am just giving a roundup.

Sol1, Hotcopper poster. Mon 19 June 2017
I am not a DGR Global shareholder but rather in the said sub.