OTCPK:CTNXF - Post by User
Post by
cigarbuttson Jan 31, 2019 10:12am
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Post# 29300998
IMO TURF these GUYS at Cornerstone also because
IMO TURF these GUYS at Cornerstone also becauseSOLG gave a lot of verygood reason in the PR for doing the deal. One of which stands out for me,
SOLG says that something like the merger provides the "Simplification of Group Structure and Removal of DRAG ON VALUE from Duplicative Overhead Costs............
I really like the Drag on Value statment as I really can no find any Economic Value Added by maintaining the Corenrstone assets in an seperate company.
The CEO at Cornerstone says they have a 1st mover advantage in Ecuador as a prospect generator since 2005, and several drill ready properties ready for option. This is disingenous IMO. I know some of you think their projects remaining in Ecuador are worth some BIG BUCKS. I say it ain't so. THey have been looked over and picked over now by at least two larger miners/explorers now. SOLG optioned into the goods. Then when the Spinco failed for whatever reason(s) on December 10, 2018 Minera Cornerstone Chile did the option deal with Newcrest. This was small $$ for the upfront option and a fairly long option period............ie................Newcrest did not think too much of the property to begin with, enough money for some G&A overhead cash burn for retiring Newfies to keep the doors open and the lights on, a bit, but really nothing for the shareholders(owners) of the company. The assumption being that the remainder projects in Ecuador were actually looked at and passed on by Newcrest.
Whereas, I actually LIKE the SOLG prospects they discuss in their PR, they seem to have a lot more promise than anything Cornerstone has left in their license blocks. And SOLG has the $$$ and partners to actually PURSUE them!