Share price is on life support pending news on who will buy out SolGold in Ecuador. It still looks like China will do so but confess that I'm surprised they have not done so by now. I guess the hold up is political between Ecuador and China. One thing certain, SolGold is not putting anymore money in Ecuador until its buyout is certain.
A company controlled by Sweden’s Lundin family agreed to buy Kinross Gold Corp. (K)’s idled Fruta del Norte gold project in Ecuador for $240 million and will change its name to Lundin Gold Inc. Fortress Minerals Corp. (FST/H) plans to raise about C$250 million ($223 million) in an equity sale to fund the cash-and-stock purchase and capitalize the company, it said in a statement today. Kinross, Canada’s third-largest gold producer by revenue, will receive $100 million to $190 million in cash, depending on the net proceeds of the financing, and the rest of the purchase price will be paid in Fortress shares, the Toronto-based miner said in a separate statement. Kinross took a $720 million charge in 2013 when it decided to halt development of Fruta del Norte as Ecuador sought to increase taxes and after gold prices declined. The company, which has operations in the Americas, Russia and West Africa, acquired the project when it agreed to buy Aurelian Resources Inc. for C$1.2 billion in 2008. The Lundin Family Trust has subscribed for as much as $100 million of Fortress’s equity offering, the companies said. The government of Ecuador has indicated its support for the Fruta del Norte sale, which is expected to be completed by mid-December, the companies said. To contact the reporter on this story: Liezel Hill in Toronto at [email protected] To contact the editors responsible for this story: Simon Casey at [email protected] Steven Frank, Carlos Caminada
Anyone interested in discussing SolGold activity in Ecuador from a serious longterm investor perspective? Particularly interested in information regarding mining political developments in Ecuadir
Day investors must have guts of steel. Flipping SolGold is not for the weak of heart. Long term serious investors will be rewarded when SolGold sells out to Ecuador's next prime mining contractor. While we wait, SolGold is brilliantly keeping sp on life support.
All this negativity is unnecessary. Investors who are in for the long haul need not worry at all. The product is there no doubt about it. The hold up is caused by SolGold seeking to cash in at just the right time, i.e. when Ecuador selects its prime mining sector partner (likely China) and when that partner buys out SolGold. If you bought in at 5 sp or lower, you will make handsome profits.
Only reason to buy now is if you truly believe that China will buy out Solgold. No signs yet that it will do so. If it does, you are in luck if you bought in at 4sp or lower.
There is only one reason to hold: waiting to see if China will buy out SolGold so that a profit can be made for those who bought in at 4p. If you bought in at higher, you are out of luck.
Time to buy! SolGold is waiting to see what China will do in Ecuador mineral exploitation. Will it buy out SolGold or push it aside?
According to USA Bloomberg Report on July 4, "Home to South America’s third-largest oil reserves and untapped copper reserves similar to those of Chile and Peru, the world’s top producers, Ecuador has granted Chinese companies access to copper mines and oil fields since the default." In my opinion, it's better to monitor the cooper politics in Ecuador vice second-guessing drill hole data, in order to estimate SolGold chances in Ecuador. I suspect that Solgold is strategically waiting to see if China will swoop in to take over cooper exploitation in Ecuador.
If Kinross resumes exploration drilling in Ecuador, any guesses as to how it could affect SolGold prospects?