OTCPK:CTNXF - Post by User
Comment by
FoolAndHisMoneyon Jun 19, 2019 6:45pm
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Post# 29841934
RE:RE:REMINDER TO VOTE TODAY
RE:RE:REMINDER TO VOTE TODAY There seems to be a misunderstanding. Cornerstone does not need to raise money right now. It has JV partners funding the bulk of the work it is doing. Re CASCABEL Cornerstone is carried on all costs until completion of a BFS (bankable feasibly study) and that is at least 2 years away, and the carry is repayable only out of Cornerstones share of earnings or dividends from a mining operation and then at Libor + 2% interest. After the BFS is completed, however, Cornerstone must contribute 15% of the ongoing costs (Example $150 million for every $850 million SOLG has to raise) or Cornerstone is subject to dilution. If Cornerstone dilutes below 10% SolGold can buy out Cornerstones share for $3.5M. I don’t ever envision a situation where the major shareholders would let that happen. I’m confident they are working to get the highest value possible for themselves and therefore for the rest of us. It’s comforting to have major shareholders with deep pockets and access to financings just in case it is needed.
After CASCABEL is sold I’m hoping Cornerstone will carry on with its others projects, several of which have really good potential. When I consider all aspects of this I’m comfortable with the path forward they’ve chosen. However, I respect the differing views of others.