N.Mather Video Pres at Diggers & Dealers on SOLG, page-14

NICHOLAS MATHER - Video Presentationiggers & Dealers Mining Forum, Kalgoorie, Western Australia. [19 Sep 2018]

This year*s Diggers & Dealers was very well attended and those who were present and listened to Nicholas Mather*s Presentation in person [6-8 Aug 2018] would have been more informed.

The said Presentation threw a Big Surprise, mainly in terms of the coming Updated Maiden Resource Estimate [mentioned in the original post with figures from CEO.CA CGP quoted from the said video] and more importantly Financing & Reveals. There was in fact a Diggers & Dealers 2018 Presentation put up on the Solgold website of Aug 2018 but the strategic keys were not present to read more into it.

In light of the potential MRE Update figures as expounded, the market reacted in London favourably to the said video NM presentation. The shares of Solgold in London went up to the 31p+ mark which is a FURTHER 20% premium to BHP*s earlier premium at 26.59p. So, a perceived re-rate type style in anticipation of the information?

This morning, Fri 21 Sep 2018 [Day 2 after the release of the said video], the share price of Solgold is currently 31.3p to Sell & 31.9p to Buy +1.94% [Advertised]. However, live price [dummy] is 31.72p to Buy & 31.5p to Sell at 8:41am.

This now makes it more difficult for BHP. If one extrapolates the next offer for a bundle of shares, the style may have been 20% premium to the 26.59p offered to Guyana Gold. This Benchmark point has already crossed.

Willem Middlekoop mentioned that he anticipates that it may take several months to play out via a tweet that I had posted earlier. An earlier tweet, Middlekoop mentioned end of summer for corporate action from recall.

NM*s said video had many facets to it relating to how they will play out their strategy. It appears that NM is ready for almost all eventualities. In the Nov 2017 Solgold Presentation, the financing of the Cascabel project may be a mix of equity and external funding [exact proportion given]. Project figures were also given. However, this presentation is no longer available.

In the NM said video, it now appears that there may be a "boot strap" to Alpala via high grade gold. I posted from the said Presentation [Aug 2018] which identifies the exact prospect. I gather it is in relation to the new financing strategy currently. What it means exactly is open to intepretation. My perception was that they would start the project from this end to garner free flow cash flow. Then, they move on to Alpala or it piggy backs Alpala. The key is cash flow and I recall NM mentioned Total Package. That also usually involves supply agreements.

Then, NM mentioned that with Newcrest, Guyana ...percunious CAPITAL MKTS. So, one can see the role of Newcrest and in particular cave blocking was mentioned and the advantage?

Now that Guyana Gold has sold their 6.1% stake in Solgold to BHP recently for US$35million at 26.59p [Implied Mkt Cap US$600m] that means that there is potentially another major on board although a small stake at this stage. Guyana paid US$10m for the said stake.

SP Angel*s latest interview gave the idea that BHP wants to join the Cascabel Copper & Gold , Ecuador project. The only way in is via Cornerstone Resource who owns 10% of Solgold and 15% stake in ENSA, the co that owns the Cascabel licence. If BHP were to be able to buy this stake say, then it takes them to the 16.1% level, they may choose to seek board representation. That would also mean that BHP is the 15% holder of Cascabel. Legals aside which has been discussed about 1st right of refusal, one can also look at it that Cornerstone if swallowed whole becomes a subsidiary of BHP. BHP may have to keep the co name etc so that nothing has changed except co ownership. That may have an advantage with relation to the project financing of Cascabel? However, legals can be complex and without seeing the actual agreement, one can only guess from general principles.

Usually, big ranked majors prefer to have Operating Status in any project they are interested in. So, depends on whether they come in as a part player or operator or own the project wholly.

So, the Cornerstone Resources holding/s in Solgold & Cascabel is attractive to any major who wants to join the project to any degree.

However, due to what NM has said, there may be more price pressure etc if the Solgold share price or Cornerstone Resources by extention moves ahead? I have elucidated an example of Sirius Resources takeover in W.Australia.

BIG REVEAL
In the past, it was said that there may be another Cascabel which may prove bigger?
In NM*s said video, he mentioned another project CLOSE to Cascabel. I have identified the prospect from the Solgold Diggers & Dealers Aug 2018 Presentation. They key was that it was posted on a whole page with details and it said CLOSE to Cascabel. That was the only reference?

DAYS AHEAD
It is clear that NM has now provided the Strategy for the current moment which differs from the earlier Nov 2017 Solgold Presentation which was very basic.

Since then, capital mkts have been difficult etc so the way forward may have had to change with the times.

NM also mentioned Fortesque & Hancock in that they were big in iron ore but now copper is their new iron ore. Fortesque is No 2 in Ecuador after Solgold. Hancock has surrounded Cascabel from the various sides per article but please check the exact details. When asked, Hancock*s rep said they do not comment whether they have shares in Cornerstone or Solgold.

NM OPEN TO ATTRACTIVE OFFERS per video presentation
I have researched further what the current M & A is at but wont bore with the details. NM has said in the past he would like to see Solgold achieve a US$1 billion cap. I think current M & A may suggest that area + - via the latest deal [Nevsun] with % more. The high for Solgold was 46.75p which was somewhat close to the US$1b mkt cap?

With the new potential project near Cascabel and the bootstrap to Alpala, that would now be quite a stunner ie news to any potential major. I am sure that the total financing package may involve a Japanese house [Commodity type] but they usually take at max a 10% stake in any project? NM mentioned Sumi.

Personally, I am pleased that the financing aspect has taken on a more sophisticated and complex package given the times.

I am sure all parties will be re-draw their strategies after this?

Just a discussion and from recall so please CHECK & DYOR. As always, recall may have errors?

The above post is caveated with: May, Hypothesis, History may not repeat exactly in the same way, legalities involved in co law etc, Potential etc.

I am not editing this post in detail as rushing off.

Fri, 21 Sep 2018