TDG Gold (Nueva Esperanza) Deal

I would ask as many of you as possible to reach out to Kingsgate management requesting an update on the progress of the Nueva Esperanza transaction. July 16th was outlined as the expected timing for a definitive agreement, or at least when the LoI would be terminable, and the same document contemplated a 31 August 2021 date for completion, which can be extended at the agreement of both parties.

TDG only announced its engagement with RBC and BMO on July 27th, so some delay would be expected, but the company should communicate to investors whether any of the timelines outlined have moved and whether they expect the deal to go ahead. This is a basic level of disclosure being asked for an important transaction.

Fletcher Morgan has said that they have been speaking to Kingsgate for a number of months. This means that they were also interested in the asset through at least the first quarter, when silver prices were not far off where they are today i.e. it would be fickle to blame volatility for the deal not getting done. I have been following a number of junior miners that have raised capital in the last could weeks. Surely, TDG would have had strong investor commitment to seriously engage with Kingsgate and we would have asked for proof of at least part of the book to be covered to entertain an offer from a micro cap that we were about to get in to business with for years. At least I would very much hope so, otherwise the idea of the share buy back itself seems to be a very imprudent move.

I remain hopeful that a deal can happen on the basis that RBC and BMO don't like the idea of getting engaged on deals that run a high risk of failure. In fact, even on a best efforts basis I am sure they would want to see a large chunk of the book covered before engaging investors.