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@Rulingmining So unlikely this is sold for cash @0Kib. Especially if it's SOLG. You will most likely get shares of the acquirer and perhaps retain shares of CGP with the other non-Cascabel assets spun out. An alternative is that CGP spins out Cascabel and retains shares of SOLG (if that was the acquirer). So CGP would still hold the non-Cascabel assets and the acquirer's shares in that scenario.
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@0Kib One disadvantage of slump sale is that if the acquirer doesn't want to pay cash or can't (or the acquiree wants to avoid paying taxes), they would prefer a share swap, which usually would happen with the listco.
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@Vaughan I beg to differ (somewhat) @0Kib. There is a pretty big difference between an asset sale and a share sale. When sold by asset purchase agreement, it is the corporation that collect the proceeds, pay taxes on the proceeds in the corp vehicle, with the remaining proceeds being an asset of the corp. a slump sale is an asset sale. In a share sale it is the shareholders who are selling an asset, therefore it is the shareholders who collect the proceeds, py taxes, etc.
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@Vaughan A mgmt team is not obligated to flow the proceeds of an asset sale on to shareholders (especially if they view it as more advantageous for the corp not to do so).
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@0Kib yes but Cascabel stake is classified as an AFS asset. So it can in theory be sold via slump sale already without needing further tweaks with 100% proceeds first going to the Balance sheet. And then management decides what to use it for. Actually, any asset held by a corporation (AFS or non AFS) can be so structured that it is saleable via a slump sale.
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@0Kib I think acquirer won't pay cash as @Rulingmining correctly suggests. The question is if the acquirer shares received are received directly by shareholders of $CGP (listco sale) or are first received by CGP Balance sheet (slump sale) and then management decides how to utilize them (sell, distribute, spinoff etc)
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@fl It's classified as AFS because they hold the Cascabel interest through a share ownership position in a holding company, not through direct mineral rights. Has to do with IFRS and not to do with their preferred way to sell it. Also $CGP couldn't sell their interest without shareholder approval - the exchange (although generally useless) would require it because it is >50% of their assets which is covered by policy 5.3.
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@0Kib @fl correct me if I'm wrong but not every set of shares held by a corporation need to be classified as AFS under IFRS unless there is a likelihood of a sale event in the near future.
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@watchdog9292929 Will be interesting to see how today plays out. I didn't expect much action in anticipation of the potential Solg listing. IMO, it is senseless to let go of CGP right now. Though, I am sure we'll see a few sells on the cheap before tomorrow. GLTA and hold strong!
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@fl @0kib Yes and no - Not every share holding is required to be classified as AFS, it depends on how the shares are designated initially. In this case I believe the only options are fair value through profit and loss, or available for sale. But AFS has nothing to do with whether a sale is imminent.
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@watchdog9292929 What does the timeline look like post approval for a TSX listing? Subject to approval, would Solg open on TSX next day?
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@fl Once the notice is posted it's usually a couple days.
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@backstroke_ Gotta pay listing fees. Have a rummage around in these, bottom seems most relevant. https://www.tsx.com/listings/listing-with-us/listing-guides
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@SavShare Does anyone know the process for dual listing? Ie can shareholders choose to shift to TSX Vs LSE? Not sure how it works? Thank you in advance
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@backstroke_ @SavShare yeah to shift you sell on LSE and buy on TSX. ;) Or have 2 positions, one on either exchange. Might come in handy!
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@SavShare @backstroke cheers, lol. I mean who provides the initial liquidity?! Are there new shares issued?
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@robo What might a Maxit - Sprott - CGP connection develop or lead to?
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@jmm @pete $solg.l $cgp $bhp The Minister of Mining announced that BHP, will invest about USD 41 million in the country's mining sector. "This is positive news that shows that international financial markets rely on Ecuador. They rely on tax conditions, stability and legal security, and so they decide to invest in Ecuadorian mining activity, "he said. - New Mining Concessions created more than USD 415 Million in Exploration. Newcrest Mining $ncmgy invested more USD 40 million in the Cascabel, operated by SolGold SOLG. - FDI is important for Ecuador. "The government of President Lenin Moreno (The new president of Ecuador) is working on permanent and transparent dialogue with communities; Technical training of human talent in the areas of influence of mining projects. - National Economic groups/firms benefits from this economic activity. i.e. Fruta del Norte gold project ($LUN) work with "Mas Errazuriz" from Chile and "Semaica" from Ecuador, explained Córdova. key contractor for Lundin Gold($LUN) for the construction of tunnels.
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@jmm @pete $solg.l $cgp $bhp The Minister of Mining announced that BHP, will invest about USD 41 million in the country's mining sector. "This is positive news that shows that international financial markets rely on Ecuador. They rely on tax conditions, stability and legal security, and so they decide to invest in Ecuadorian mining activity, "he said. - New Mining Concessions created more than USD 415 Million in Exploration. Newcrest Mining $ncmgy invested more USD 40 million in the Cascabel, operated by SolGold SOLG. - FDI is important for Ecuador. "The government of President Lenin Moreno (The new president of Ecuador) is working on permanent and transparent dialogue with communities; Technical training of human talent in the areas of influence of mining projects. - National Economic groups/firms benefits from this economic activity. i.e. Fruta del Norte gold project ($LUN) work with "Mas Errazuriz" from Chile and "Semaica" from Ecuador, explained Córdova. key contractor for Lundin Gold($LUN) for the construction of tunnels.
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@robo Might the Maxit-Sprott-CGP connection lead to BHP?
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@HighROI Huge liquidity risk for Rosseau to be making this move. There must be a plan already in action and to me anyways seems too risky for someone with their massive shares to count on a Solgold takeover when they have publicly stated their negative views of Management. Solgold probably wants to consolidate Cascabel but how can Rosseau make such a risky move when you don't trust Solgold management in first place? My original thought was this move was creating an entry vehicle for a major to have equal footing with Newcrest.
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SEDI_bot Cornerstone Capital Resources Inc. $CGP just filed 1 reports. View full report: SEDI:CGP
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@teevee @HighROI, $CPG another risk is that cpg could simply just sell their interest in Cascabel. They are a prospect generator, and as such, less keen on being taken over, and more keen on capitalizing the asset, and then being well financed to go out and do more of the same.
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Kevin @teevee I don't think that's likely, there is enough value in the 15% to far exceed any cash required for a prospect generator business. And more so now with the Solgold holdings. Someone also mentioned that a asset sale may require a shareholder vote.
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@nasdaq Cascabel Exploration Update @nasdaq/cascabel-exploration-update $CGP $CTNXF $GWN $GWN #news/mining Ground magnetic survey results reveal exciting targets. Exceptionally high-quality product produced from 650km of total field data acquired at line spacing of 50m. 
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@nasdaq Cascabel Exploration Update @nasdaq/cascabel-exploration-update $CGP $CTNXF $GWN $GWN #news/mining Ground magnetic survey results reveal exciting targets. Exceptionally high-quality product produced from 650km of total field data acquired at line spacing of 50m. 
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@teevee Kevin, $CGP, how far is cgp carried? to a bankable FS? a production decision? , or carried through production? That will most likely govern whether or not CGP is really a takeover candidate or has something to sell, what its real worth is, and how CGP management and their board will most likely proceed.
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@Rulingmining bankable FS
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@watchdog9292929 By what time should we know of the decision on Solg?
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@Stevest no volume today only 550 shares traded odd.
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@Rulingmining Lol looks like the only way for BDM to exit is a transaction. He could never sell in market.
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@jmm @Rulingmining VCs and Hedge Fund Managers model/plan their exit before entering the deal. Min 5x profit in 5 years, no less than 100% in a year.
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@Asheville IMHO this is a friendly. It's all being coordinated for the best interest of all parties "not at arms length".
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@0Kib @jmm no PE/VC works with a 100%/yr baseline return expectation. Usually it is 20-30% IRR.
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@jmm @0Kib thank you for your note that allows me to clarify my post. I was more referring to the entry/exit decision/process. To enter they do need to see the potential to generate 5X in 5 years (in some cases is 10x that is a 59% ROI per year; It could be different depending on the industry and stage of the company /associated risk)
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@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!
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@soulMiner @PamplonaTrader Thanks. Nice logical explanation for what's happened. Hope it plays out that way. Seems a lot of chess being played by all parties.
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@SavShare @pamplonaTrader thank you for your explanation - very interesting perspective, even for a Solgold holder :)
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@pete $SOLG.L $CGP Cascabel Update: http://www.rns-pdf.londonstockexchange.com/rns/9364I_-2017-6-22.pdf Hole 25: 776m @ 0.77% CuEq Hole 24: 586m @0.43% CuEq
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@pete $Solg.l TSX listing conditionally approved https://twitter.com/SolGold_plc/status/878144872502317056 $cgp
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@Rulingmining Would be interesting to know what conditions $SOLG still needs to satisfy for approval
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@nasdaq Cascabel Hole 24 & 25 Assay Results @nasdaq/cascabel-hole-24-25-assay-results $CGP $CTNXF $GWN $GWN #news/mining Cascabel copper-gold porphyry joint venture exploration project in northern Ecuador: Hole 24: 586.0m @ 0.43% copper equivalent ¹ (0.27% Cu, 0.25 g/t Au) from 636m; Hole 25 (Rig 2 Hematite Hill) assay results: 776.0m @ 0.77% copper equivalent (0.58% Cu, 0.30 g/t Au) from 754m );
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@watchdog9292929 "porn" assays released this morning provide for a nice reminder of how undervalued both solg and cgp are. Market will react soon. GLTA
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@enviro111 $tk . $cgp. $nxe. Can anyone give me the link to the geology YouTube series. I think it is a set of seven videos. Thanks
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@robo @enviro111 i know the series you ask about...i've have seen it. i tried to find the link but the best i could do is give a link that may direct you to the vids...hope this helps a little... https://ca.search.yahoo.com/search?fr=mcafee&type=C111CA876D20161207&p=geology+seven+part+series
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@robo @engineer that's another good one, forgot about that one.
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