The Delay is...The delay is that this company needs "Political Risk Insurance" "(PRI)", which is hard to get and find, but none the less needed before any bank will lend them this huge amount of money, that they will need.
A Key Point is that this insurance must also be completed long before SGA can even begin to arrange their own final bank financing, so no answer to this request will be given to them until the (PRI) is signed and sealed.
This is all based on the country's past experience and revolt history. Something I am sure our company never expected, as they stopped carrying this insurance long ago, which I think for a good reason.
But none the less, they are now forced into getting it, as this is needed before any bank will deal with them seriously. This may not sound pretty but at least this is a good reason and explanation as to why things got so delayed.
Since our company doesn't have a lot of collateral, they plan to get a guarantee from the Australian Government, because of their military activity and presents on the Solomon Islands and their assurance of the security their.
As luck would have it, Australia is in the midst of their top electoral campaign right now, which started mid October, so they don't expect an answer until Mid March, 2008. So basically, and the truth is, they are on hold until then.
They do however (slowly) continue with their exploration program, especially at the gorge, but so far, on technical paper anyway, proved up nothing.
I personally take more points off of this management, which is close to negative territory by now anyway, as it is their job to know this.
We don't pay them "Big Bucks" and "Umpteen Options" for "EXCUSES", and missing the boat, do we?
The share price certainly reflects this now anyway, and this loss is a Shareholders Loss, and not the Management's. In a Take-over Bid, this mistake could mean millions to us.
Here is the LINK
https://www.solomonsgold.com.au/files/ASG_Annual_Report07.pdf
Go to Page 31.
If that doesn't work, try this one for the 2007 Report, and again read page 31.
https://www.solomonsgold.com.au/reports.php
PS!!!
Don't be too disappointed if this company reaches production by June 2009. Be surprised! They have missed each and every one of their forecasts by about 2 years, and I see no reason why this forecast should be any different.
But I do believe they really have something big at Gold Ridge. Big enough for someone else to take over. TG! I figure when Sino Gold takes their 20% ownership, it will at least make the big boys put the cards away, and their suite and ties back on.
GB.