SolGold latest NI 4310, page-12

CORNERSTONE RESOURCES [CGP listed in Canada] IN M & A PLAY?

Per the announcement from CGP in reply to Solgold takeover offer, it appears that CGP is now in M & A play. They themselves cited that they want in excess of C89cents.

Solgold offered them a 20% premium and one article worked it out to be C 35cents at the time as its a share swap.

CGP closed on Fri, 8 Mar 2019 at C32c with a market capitalisation of C$203 million.
If CGP wants 89c, then the market cap would be C$564million = £300 million.
[£1=C$1.85 and £1=A$1.75]

CGP owns <10% of Solgold shares + 15% stake in ENSA [Ecuadorian entity that owns the Cascabel licence] = Nearly 24% economic interest appox.

CGP used the 45p [BHP*s last buy-in of Solgold shares] s the benchmark + other forumlae to calculate the 89c.

>>SOLGOLD listed in London, 37.5p with a market cap of £688 million on Fri, 8 Mar 2019<th<<
Using inverse maths to gross up, then by extension Solgold shares could be 52.47p or Mkt Cap £950million.

<>M & A
Paradigm in their broker note on Solgold [see the title of the note ie M & A] used $0.07c for copper M & A. Also, that M & A is usually 70-75% of NPV.

JP Morgan cited the NPV to be $3.5b.

So, say taking 72.5% mid-point = $2.53b.

Tribeca wanted Rio to do a takeover of Solgold at $1,5b.

Last M & A was $1.4b.

[All these figures within the last few post of mine and 2Luke for the Tribeca reference from AFR]

COMMENT:
Hence, the coming PEA will be interesting. A/c to whatanight who attended PDAC, a figure was quoted. So we awaited the official announcement.

Obviously, a revision or updated figure on the last MRE will affect the metrics?

Also, that after the PEA, there will be further drilling or more updates?

To me, it now appears that if CGP has put themselves in play as they cited BHP etc in their announcement, then by extension will Cascabel also not be in play?? What is the point of owning 15% of Cascabel. From the Escondida example shown and posted, BHP owns some 57%+- and usually it is commonly known that the co with 50%+ becomes the Operator of the project.

It is reasonable to conclude by logic that 15% is neither here nor there in terms of becoming the Operator of the project.

An interesting discussion. If there are any errors in the rough calculations, please correct. It is just simple inverse maths. Please note there is NO inference to actual M & A prices except to just post all the figures given already in the market place. It is just an idea of the comparitives of £300m vs £688m [CGP*s expectations and Solgold mkt cap?]

sol1, Sunday 10 Mar 2019
Off for dinner so not editing. Pardon typo errors.