This is a major juncture for Solgold - DGR*s largest Sub by Market Capitalisation & by extension the most "valuable" at this time. I don*t need to go over old ground as the DGR Global recent announcements have illustrated so.
Solgold, listed in London on the Alternative Investment Market is about to enter TSX, Canada [awaiting decision of the Listing Committee] and Main Market, London Stock Exchange [advanced intentions, planning etc].
The further investment by Newcrest of 5%+ mark for US$40 million at a Premium of 15% to the previous day has been reported in the New York Times, Mining.com etc.
As said, Hotcopper Hot News has a good article on this on the Newcrest Hotcopper forum [NCM]. This story also appeared last night on the front page of Hotcopper.
The extra funds of US$41 million+ is a precursor to the potential TSX and LSE Main Market [London] listing. It appears to provide Balance Sheet strength as such.
With Newcrest now on board at 15.54%, it would appear that Solgold may seek to be a producer as one option. However, in the announcement of 16 June 2017, it makes provision that Newcrest has agreed that in the event of a capital event [buyout] it will go along with the board*s decision etc [please check on www.solgold.com.au ]
Nicholas Mather, CEO of Solgold has said that if the Offer is right, he may sell out ie Buyout.
I don*t need to go over old ground as this was all referenced with links before including that of becoming a producer.
So now, its playing a chess game. The drilling of Aguinaga at Cascabel, Ecuador is stated to be August 2017 - this appears to be the more surface expression of the deposits so far. As and when it is test drilled, it may present the project with a more surface expression as is norm.
In the London forums, the talks has been for months of buyout from the previous proposer [Announcement of 10 Oct 2016] ie BHP etc.
I set out the Orbis Gold buyout details wherein, the proposer made a buyout offer in the month of Oct and by Feb of the next following year was followed up with a slightly raised offer based on the fact that no other Offer emerged. This was a medium gold project.
Feb 2017 has passed. What the London forums missed was the article entitled:" Majors crouched but not ready to pounce."- Mining Journal. Com 20 Mar 2017. The gist of the article suggested that "despite the need among majors to top up resources ...RBC metrics suggest the M & A.... is STILL SOME WAY OFF. Valuation for expl. co*s now sit at an averse $55/oz firmer than $48/oz seen in Dec following the Fed hike." [The background was from the PDAC Conference in Toronto] Please Google the title to read.
As a backdrop, the mining downturn had effected the industry and Balance Sheet strength was the order of the day which includes the whole spectrum of financial house-keeping.
Solgold*s Cascabel project in Ecuador is not solely gold but rather copper and gold [one is the credit element].
Therefore, those in the mining industry would have an idea of what majors were prepared to pay in Mar 2017 [time of PDAC Conference in Toronto]. From what I have read and posted, it is not my feeling that Mr Mather is out for a less than full value Buy Out. I have provided videos and links before.
No company can just sit and wait for a "Right" Offer and therefore they continue to advance their Strategies as advised by their Investment Bankers.
This is the juncture we are at. Since Solgold has mentioned in their announcements that Cascabel could be akin to Oyu Tolgoi [listed in the Canadian exchange] which was the project of Robert Friedland, this may be the trajectory or not. Its a long story and there was also a major in the mix.
No story is the same and hence, I am posting historical rather than forward ideas. However, there are some benchmarks and case studies as eye openers.
So, this journey for Solgold continues. One awaits next corporate events and news. I am not privy to information other than that in the open dormain. Therefore, I do analysis as best as I can as a shareholder. Analysis is under-rated.
Since I started posting on Solgold on HotCopper, I thought it courteous to provide a conclusion to this point of inflection for the co.
To Solgold*s credit, it is one of the few co*s that has made the transition from junior exploration explorer to that of one on the cusp of potentially joining the London main market. Cascabel Solgold*s project has been well documented.
In April 2013 or thereabouts, Solgold did a placing at 1.5 British pence and the market capitalisation was around the £8m mark. This was start of the Cascabel ,Ecuador project.
Today, Solgold*s share price is 39 British pence with a market capitalisation of £588 million. [Fri, 16 June 2017] Since 2013, Solgold has seen BHP entering to make an Offer of Investment in Oct 2016 together with Newcrest in the mix.
For the avoidance of doubt, shareholders are not in the driving seat and therefore, one cannot say the co will or will not be the subject of a further takeover etc. What is clear is that Solgold is advancing its position as is norm.
Sol1, Hotcopper poster, Sat 17 June 2017
DGR Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
(20min delay)
