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SolGold PLC (SOLG)

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Wednesday 02 June, 2021

SolGold PLC

SolGold & Cornerstone Agree to Work Cooperatively

RNS Number : 4998A
SolGold PLC
02 June 2021
 

2 June 2021

 

SolGold & Cornerstone to Cooperatively Advance Cascabel

to Maximize Shareholder Value

 

Brisbane, Australia / Ottawa, Canada - SolGold ( LSE & TSX code: SOLG ) ("SolGold") and Cornerstone Capital Resources Inc. (TSXV:CGP; OTC:CTNXF; FWB:GWN) ("Cornerstone") (together the "Parties" and individually, a "Party") are pleased to announce today they have agreed to work cooperatively to advance the Cascabel Project in northern Ecuador.

Concurrently with advancing the Cascabel Project, the Parties will explore and evaluate a range of strategic and financing options focused on maximizing value for their respective shareholders with respect to the Cascabel Project.

The respective Boards of Directors of the Parties are committed to this strategy while simultaneously supporting management and employees in their ongoing efforts to advance the Cascabel Project including finalisation and delivery of a new technical report. Both SolGold and Cornerstone each believe that pursuing these complementary paths is in the best interests of their respective shareholders, employees and stakeholders and is designed to maximize value for each company.

Mr. Twigger, Chairman of SolGold, and Mr. Chamandy, Chairman of Cornerstone, jointly stated: "We are committed to fostering a positive working relationship between SolGold and Cornerstone for the benefit of our respective shareholders. Our focus remains on maximizing shareholder value by cooperatively advancing Cascabel with the input of both of our respective management teams and pursuing all potential value enhancing initiatives."

Keith Marshall, Interim CEO of Solgold commented: "For too long our companies have been pulling in different directions. This initiative provides an opportunity for both companies to put away their differences and to work together for the collective good of the Cascabel Project."    

Nick Mather, a Director of SolGold, commented: "I am welcoming this initiative and I am 100% supportive as I believe it can maximize value for SolGold shareholders which has been my objective from the very beginning. Delivering an updated technical report that reduces the risk profile of Cascabel along with advancing discussions with Cornerstone in parallel, is the correct strategic decision and will benefit SolGold shareholders."

Brooke Macdonald, President and CEO of Cornerstone, added: "Our focus is aligned with respect to lowering the development risk at Cascabel and accessing the high-grade core at Alpala that currently has 442MT at 1.40% CuEq in the measured & indicated category including 359MT at 1.47% CuEq in the measured category alone based on MRE#3 [1]."

 

By order of the Board

Karl Schlobohm

Company Secretary

 

 

[1] See "Cascabel Property NI 43-101 Technical Report, Alpala Porphyry Copper-Gold-Silver Deposit - Mineral Resource Estimation, January 2021" with an Effective date: 18 March 2020 and Amended Date: 15 January 2021 (the "Amended Technical Report"), filed at www.Sedar.com on January 29, 2021.

 

CONTACTS

 

Karl Schlobohm

SolGold Plc (Company Secretary)

[email protected]

 

 

Tel: +61 (0) 7 3303 0661

Ingo Hofmaier

SolGold Plc (GM - Project & Corporate Finance) [email protected]

 

 

Tel: +44 (0) 20 3823 2131

Fawzi Hanano

SolGold Plc (Investors / Media)

[email protected]  

 

 

Tel: +44 (0) 20 3823 2131

Follow us on twitter @SolGold_plc

 

ABOUT THE CASCABEL PROJECT

The Cascabel Project is 100% owned by Exploraciones Novomining S.A. (“ENSA”), an Ecuadorean company owned by SolGold and Cornerstone. The Alpala deposit is the main target in the Cascabel concession, located on the northern section of the heavily endowed Andean Copper Belt, the entirety of which is renowned as the base for nearly half of the world's copper production. The project area hosts mineralisation of Eocene age, the same age as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to the south. The project base is located at Rocafuerte within the Cascabel concession in northern Ecuador, an approximately three-hour drive on sealed highway north of the capital Quito, close to water, power supply and Pacific ports.

Having fulfilled its earn-in requirements, SolGold is a registered shareholder with an unencumbered legal and beneficial 85% interest in ENSA. The junior equity owner in ENSA is required to repay 15% of costs since SolGold’s earn in was completed, from 90% of its share of distribution of earnings or dividends from ENSA or the Cascabel concession. It is also required to contribute to development or be diluted, and if its interest falls below 10%, it shall reduce to a 0.5% NSR royalty which SolGold may acquire for US$3.5million .

 

 

ABOUT SOLGOLD

SolGold is a leading exploration company focused on the discovery and definition of world-class copper and gold deposits. SolGold, with 76 concessions covering approximately 3,100km², is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective and gold-rich section of the Andean Copper Belt.

 

 

See www.solgold.com.au for more information. Follow us on twitter @SolGold plc

 

Market Abuse Regulation (MAR) Disclosure

 

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

 

 

CAUTIONARY NOTICE

 

News releases, presentations and public commentary made by SolGold plc (the "Company") and its Officers may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to interpretations of exploration results to date and the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's Directors, including the plan for developing the Project currently being studied as well as the expectations of the Company as to the forward price of copper.  Such forward-looking and interpretative statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such interpretations and forward-looking statements.

 

Accordingly, the reader should not rely on any interpretations or forward-looking statements; and save as required by the exchange rules of the TSX and LSE or by applicable laws, the Company does not accept any obligation to disseminate any updates or revisions to such interpretations or forward-looking statements.  The Company may reinterpret results to date as the status of its assets and projects changes with time expenditure, metals prices and other affecting circumstances.

 

This release may contain "forward‑looking information" within the meaning of applicable Canadian securities legislation.  Forward‑looking information includes, but is not limited to, statements regarding the Company's plans for developing its properties.  Generally, forward‑looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 

 

Forward‑looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward‑looking information, including but not limited to: transaction risks; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry.  Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Factors that could cause actual results to differ materially from such  forward-looking information include, but are not limited to, risks relating to the ability of exploration activities (including assay results) to accurately predict mineralization; errors in management's geological modelling and/or mine development plan; capital and operating costs varying significantly from estimates; the preliminary nature of visual assessments; delays in obtaining or failures to obtain required governmental, environmental or other required approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; the global economic climate; fluctuations in commodity prices; the ability of the Company to complete further exploration activities, including drilling; delays in the development of projects; environmental risks; community and non-governmental actions; other risks involved in the mineral exploration and development industry; the ability of the Company to retain its key management employees and skilled and experienced personnel; and those risks set out in the Company's public documents filed on SEDAR at www.sedar.com .  Accordingly, readers should not place undue reliance on forward‑looking information.  The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

 

The Company and its officers do not endorse, or reject or otherwise comment on the conclusions, interpretations or views expressed in press articles or third-party analysis, and where possible aims to circulate all available material on its website.

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