To be honest I can see why Cornerstone would be dismissive. They have farmed out Alpala to NM and watched the SOLG share price go bannanas. Id also be saying p.off Solgold if I was in Cornerstones position (mgmt). They have tried to get rid of Mather and failed, which looks like a massive mistake in hindsight. (Not only did they fail in their objective their quick rubbutal of the proposal now suggests this might be personal and suggests a heightened egos at play.
NM played a very good hand here. Accepted the fact that that he needed money from the majors, but but I guess he manufactured the time slot i.e BHP/Newcrest cant buy into Cornerstone but soon will need money. Im not currently over the details on how soon, nore research needed to confirm the big guys brilliancy.
Cornerstone needed to move Mather and they havent. A huge blunder in hindsight.
Because the average punter in Cornerstone should be jumping at the oppourtunity to merge. It just speeds up the potential takeover of Alpala and hence future growth of asset monetization. The only reason you wouldnt want this merger as a Cornerstone investor is if you believe Cornerstone has more upside in the exploration portfolio. Cause lets face it our guy outplayed their guy in the corporate brilliance department. Not bad for a banana bending geo.
So what Im predicting is a battle in the exploration space. NM needs to prove our 72 are equally as good as anything Cornerstone have. And c stone got first pick. Cornerstone will fire the first volley if (rumored to be likely) they get the permits to drill Bramederos very soon. SOLG have permits in que and will have the next shot. But will own the whole prospect not just 20% that Cornerstone has at Bram. (I think they have sold down others aswell- more research required here also.. point is we have 100% of our licences. NM always yakking on about this. The astute words of grand master, the king of spin, the eternal king of a man portable, spinning up a storm 1000 yards up the Cornerstone. Yes NM. Yes. One step ahead, spitting out fifty factoids a minute. Espousing brilliance as always.... Love the man, love him.
So my guess is we start seeing geophysical surveys that get compared to Grasburg, Escondida, fruta del norte, and why not pehaps even Cascabel! Big white geophysical anoms, huge potential. . HUUGE potential. Then we have a drill off.
Until Cornerstone either run out of cash or find a cornerstone investor of their own. Good luck to them.
DGR Price at posting:
12.0¢ Sentiment: None Disclosure: Held
(20min delay)
