Share Accumulation, 5%
A shareholder asked to what extent bidders are permitted to acquire Core Gold shares. Mark Bailey, Gregg Sedun and Sam Wong replied. Titan has not signed a CA, but would re required to declare if they were intending on gaining a substantial interest, especially over 10%. If understood correctly, once bids are submitted, bidders are typically limited to acquiring no more than 5% of the shares.
Titan and Vertex
August 8 Titan purchased the Vertex debt, per their circular, and September 15 Titan announced that Vertex’ shares had been pledged to Titan for their intended takeover bid. A question that some shareholders have asked: was there a ‘quid pro quo’, for example pledging of shares to Titan in exchange for the assumption of debt, or whichever kind of arrangement? Following the AGM, on October 15 Core issued a release:
“The timing of the Titan Offer is intended to pre-empt the Strategic Review process and is intended to force Core Shareholders to make determination on the Titan Offer without Core Gold having had the opportunity to fully canvas the market and other available opportunities.
“Titan was given the opportunity to participate in the Strategic Review process but declined. The Board of Directors can only fully assess the adequacy of the Titan Offer with the benefit of the results of the Strategic Review."
One ponders what Titan’s bid processes might have looked like, if carried out in a manner more friendly and transparent to Core shareholders. An independent valuation of their assets, cash to shareholders, taking Core shareholder concerns seriously, all would have made a different impression.
Titan’s intentions appear unclear. The process around Vertex appears murky to many. It’s possible that Titan may have had a contractual obligation to bid a second time, or some other as yet unknown motivating factor.
Below - double rows of process tanks.
Ecuador Fuel Subsidies
The government of Ecuador cancelled their plans to end road fuel subsidies, and the protesting groups declared peace.
Mark Bailey and Keith Piggott explained that the mining equipment Core employs already has paid world prices for diesel for a long time; only trucking diesel was in question.
In the Press
Chris Temple and Mark Turner both wrote in the past few weeks about their recommendations on Core, if for different reasons. Mark Turner = “Otto” focuses arbitrage opportunity, “up sharply, but the arb left means there's likely more to come. Disclosure: I own a few, won't sell into a 2-handle though.” His reports are available at IKN.
Chris Temple at National Investor has written knowledgeably about Core a number of times, describing its “Cadillac of operations” and highly desirable projects. He also feels:
“... board and present management have buried the hatchet and are jointly looking again at those “strategic alternatives”... “ This is tempting again; because as you know I am familiar with the assets and—as others—consider them to be HUGELY attractive,” .. “... all of the board now seems to be pulling in the same direction.”. Obtain his latest National Investor to catch up.
Below - fresh water is recycled at Portovelo.
