SOLGOLD - Takeover - State of Play
<><>"Gold producers eye Xanadu as Mongolia gets its act together."- The Australian, 30 Dec 2016 [Please enter title into search engine to read]
Quote: "Newcrest Mining was forced earlier this month to double the price of its proposed investment in a stake in Brisbane based, London listed explorer Solgold after a rival interest proposal from another group, while BHP Billiton subsequently approached Solgold with a US$305 million ($423m) offer that was ultimately rejected. Solgold owns the promising Cascabel copper gold discovery in Ecuador.
"There*s a lack of economic discoveries at the moment you can see that reflected in some of the M & A activity at the moment with Solgold and Cordoba, he said."
<><> "A crisis arrives in the South American Copper Market."- Value Walk, 22 Oct 2016
www.valuewalk.com/2016/10/crisis-arrives-south-american-copper-market/
Quote: "Its in that country a BIDDING WAR broke out between major BHP and Newcrest for control of one junior held deposit here: the Cascabel gold project owned by Australia/UK based Solgold.
With each major offering to finance at least $30 million in equity in the co and Joint Venture the project up to $275 million. That*s a hefty spend. And to see such commitment from NOT 1 but 2 majors simultaneously DOES*NT HAPPEN TOO OFTEN."
Observation:
The above articles have not been disseminated into any London, Canadian or Australian forum so there are some fresh aspects.
From my embedded posts, also of today, Sun 12 Feb 2017, Solgold closed at 42 British pence on Fri, 10 Feb 2017 with a market capitalisation of £610.69 million = US$763.36m [vs US$305 million proposal from BHP for Solgold on 10 Oct 2016 Solgold RNS]
Some of the reasons have already been posted [re-rating, drilling,Potential TSX & LSE Main Mkt listing ] and will include "Copper jolted higher as threatened disruptions point to deficit."- Bloomsberg, 8 Feb 2017 and "Now even Citi and Goldman are highly Bullish on Copper."- Commodity Trade Mantra, 10 Feb 2017
So the role of Newcrest Mining who is still onboard with a 10% stake in Solgold appears to be one that is of a JV interest as per the Value Walk article. It also appears that BHP also has the same idea.
On Newcrest, my posts of today also cited: "Newcrest cool on 2nd play by BHP for Solgold."- SNL Metal and Mining on Twitter 23 Nov 2016
CONTRAST
the above with "Solgold not ruling out potential offer by BHP"- Mkt Intelligence S & P, 19 Nov 2016. Quote: Nicholas Mather:" Solgold would consider a TAKEOVER from BHP IF the price was right."
My comment: It would appear from the fresh info from the BHP offer, it may well be a JV at the time if the report is taken to be correct.
So do we consider that a takeover offer differs from a JV? It appears so. However, from the above IF correct, whatever the outcome ie takeover or not, Newcrest is still on board.
That is the interesting part ie that with 2 majors simultaneously doesnt happen too often as per Value Walk article.
So, we await further developments. I could not type up the posts all in 1 go as I had to break off to do other things.
Just a discussion of where Solgold is at and info is now historical although there is fresh info if correct.
Sol1, Hot Copper 12 Feb 2017 [Sun]
(20min delay)
