Post by
Reddale on Nov 17, 2020 7:56pm
Standstill agreements & hostile offer expired a month ago !
The Sol - BHP standstill agreement expired a month ago (19th) and so did the hostile offer by Sol to take out Cornerstoned (15th).
BHP and Newcrest both own 13.6% and probably didn't like the Tricky Nickie deal with Franco, Newcrest already pulled their board member from Solgold, but back to CGP.
Cornerstoned interest in Alpala is carried by Solgold's expenditures until the Feasibility Study is released. Then Cornerstoned has to start ponying up their share of capital costs. So, where does CGP come up with money to maintain their current portion of Alpala , which is a monster deposit requiring a monster capital expenditure - estimates are about $2.7 Billion capex?
Previously CGP consolidated the number of outstanding shares and the price per new share did what they always do - it fell hard ! CPG is positioned with fewer (currently) issued shares - why not just print more shares ? That option just stinks in my opinion as there are only 32 million shares outstanding and when you need to raise $400 Million US dollars thats adding another 13 mllion plus 4 million for currency exchange
So back to where I started, would BHP be happy if CGP couldn't maintain it's ownership percentage by not ponying up bags of money (15% of U$ 2.7 billion is $400M) after Fease is relased? Would Solgold exercise it's take out of CGP as per their agreement if CPG fails to spend enough to maintain >10% ownership ?
Would the net effect of Sol owning more Alpala, with CGP gone, be beneficial to BHP as BHP gets more of the Alpala for their 13.6% ?
CGP management had lots to say before mid October and why the stunning silence for the past 30 days? Things not turning out as planned ?
Has CGP found out they actually do not have new friends over at the BHP camp? And is Newcrest happy to be just an observer and enjoy whatever 13.6% gets you - including watching CGP become irrelevant.
I've got Christmas shopping to do boys and want some cash to do it with, so get on with it CGP - the clock is ticking on the Feasibility Study and so is the expiration date on the concession lease which is fease study dependent.
Red