The information on this Website is not reliable and not intended to provide tax, legal, or investment advice. Nothing contained on the Website shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@PamplonaTraderEchelon and Jitney were paying a premium over Cascabel par value on Friday. I am guessing Sprott was in CGP mgmts ear about unlocking value from it's other assets ASAP before $SOLG.L or anyone else had a chance to take it all over for free?
@PamplonaTraderOnce $SOLG.L is listed on TSX, there were ppl worried about a rotation out of $CGP and into SolGold, what would it take to keep money in $CGP? For me it's the "no brainier" takeout thesis... But a spinco would help.
@PamplonaTraderThe problem with the spinco theory is that the spinco itself might be vulnerable to a hostile takeover if it's shareholders do not understand the value of its assets. $CGP also do not have much cash, under C$2.7m... So will need a big JV partner to unpack value from the projects or a big discovery (Bramaderos? Historic trench results 41.7m @ 3.7g/t Au).
@PamplonaTraderThat doesn't preclude BHP (who tried last fall to get a piece of Cascabel and may have been shut out yet again last week) or Rio from making a move on $CGP.
By taking out CGP, at worst, BHP/Rio would have to settle for a 15% minority interest in Cascabel and the portfolio of Ecuador projects. The majors would obviously prefer an operating interest in Cascabel. Taking out CGP and their 15% economic interest in Cascabel would get a BHP/Rio immediately caught up with NCM.
@DJS@PamplonaTrader I agree -- two additional benefits are that $CGP can now be considered a takeout option by more than just $SOLG.L, and the value of $CGP's carried interest is now much more in the spotlight. Both are positive.
@PamplonaTrader@CriticalInvestor who is getting carried away? Though CA's aren't anything to get wild about... It would certainly be interesting to know with whom a CA was executed as it could give indication of ultimate potential/size of Ayawilca. A CA with Trevali isn't the same as a CA with BHP/Rio/Teck.
@CriticalInvestor@PamplonaTrader of course, but that's all hypothetical, something you and I will never find out until buyout. And Team Carman is too professional for that to have this leaking somewhere. Always kickin' tires going on somewhere, I know examples for 3-4 years, still nothing happening. You can't base any investment decision on this. Just my 0.02
@peteLook, @BDMinefinder, the guy who was pounding the table on another great Tier1 project $nxe, has just deployed millions in cgp. Huge vote of confidence for the cgp mgmt team and their assets. As @pamplonatrader said all year long.. small chance cgp will live to see 2018
@PamplonaTrader@robo the only thing Warren would confirm is that he has lost faith in $SOLG.L management and that he doesn't agree with their strategy of gradually selling to $NCM.AX and at a discount. He also says Brooke has a like mind and understands how to create value for $CGP.
I think there is alot more to this story and on both sides. In my view, Mather has been playing a bit of defense since spurning $BHP in favor of $NCM.AX. In the UK, disclosure rules require reporting when more than 3% of the company is acquired. In Canada, that threshold is much higher at 10%. Perhaps the reason $SOLG.L delayed TSX listing was to prevent $BHP or one of the other majors from sneaking up on them. I think maybe there is a reason why they are pursuing TSX listing only after $NCM.AX (who is required to align itself with $SOLG.L's BoD) established a 14.54% toehold on $SOLG.L.
Now that $SOLG.L has consolidated control of its share registry and its balance sheet well capitalized, they could have it in their minds to play some offense. I think it's time they go after $CGP to consolidate control of Cascabel and also their presence in Ecuador.
On the other side, I think Warren and Brooke made a brilliant move. $CGP needed to recapitalize the balance sheet and they also needed a stronger shareholder base. Brooke achieved both these things AND increased our exposure to Cascabel via 5% shareholding in $SOLG.L.
$CGP is now even more enticing to a major like $BHP. By acquiring $CGP, they can elbow their way into Cascabel. Instead of showing their hand after accumulating just 3% of $SOLG.L, they can grab ~19% economic interest in Cascabel in one move by taking out $CGP.
As for Warren... this move was a masterstroke! Having gotten sick and tired of Mather shrugging him off, I think he positioned himself in $CGP to get the attention of the $SOLG.L BoD. $SOLG.L would be stupid not to take out $CGP and consolidate ownership of Cascabel... and when they do, they will have to offer Warren a seat on their Board. Genius!
@PamplonaTraderZone 3 basement rocks deeper than expected. Good news! Lots of limestone to drill.
Also, in past conversations I was told that the company would test Chaucha if there were positive indications at Zone 3.
Guess where the 4th rig is headed as we speak?
@PamplonaTraderThey could have sent sections of the hole for assay before reaching target depth. Like hole 56.
My thinking is that they want to keep drilling until they reach the basement unconformity where they should hit tin-copper mineralization.
@PamplonaTraderAlternatively, would they continue to drill 1km+ into Zone 3 if they were pulling crap from the core? In my view, they must have hit some paydirt and are continuing to drill to investigate possible tin mineralization at the basement contact.
@PamplonaTraderMeanwhile, South and West Ayawilca seems to be developing nicely. They are stepping out all around West Ayawilca, it's clear this higher grade zone is going to get bigger. Also, hole #78 at South Ayawilca suggests positive results from holes #71 and #75.
Drill baby drill!
unzincableJust thanks for doing what you do. I would never have found Cornerstone otherwise. I have held TK since Christ was a cadet and appreciate your comments more than anyone else. Thanks--joe
click to invite
@KaveatEmpty@poolman I would call him @pamplonatrader "good/excellent" at whatever he does but in the end, he is here to drum up support for the stock so if that means he is not a promoter, then let's just call him an armchair analyst. He sure is good, though!
unzincable@PamplonaTrader You are far more aware of what is typical than I am, so I must ask. Are you comfortable with Tinka stock option proposal and do you consider it to be fair compensation in relation to other explorers?