REG - SolGold PLC - Company Update

SolGoldAnnouncement

22/11/2022 07:00

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RNS Number : 1856H  SolGold PLC  22 November 2022

22 November 2022

SolGold plc

("SolGold" or the "Company")

Company Update

 

The Board of Directors of SolGold (LSE & TSX: SOLG) wishes to provide an
update on the Company's strategy and near-term priorities following the
appointment of Mr. Scott Caldwell as Interim Chief Executive Officer ("CEO")
on 10 November 2022.

Mr. Caldwell has over 40 years of extensive experience in the global mining
industry, having held several senior executive and operational roles with
notable mining companies including at Freeport-McMoRan's Indonesian properties
and block cave mines, Kinross and the large Collahuasi mine in Chile,
operating globally and in South America. Mr. Caldwell is familiar with SolGold
and its assets and aligned with shareholder interests as a result of being:

i.      a significant investor in a personal capacity;

ii.     the former CEO of a corporate entity that previously held more
than 5% of the outstanding ordinary shares of the Company; and

iii.    a former director of SolGold.

Mr. Caldwell's remuneration as Interim CEO will consist of a nominal annual
base salary of US$200,000 and will include performance-based equity awards to
further align his interests with all shareholders. Upon closing of the
Cornerstone Capital Resources Inc. ("Cornerstone") merger transaction (the
"Transaction"), Mr. Caldwell will own 17,587,500 SolGold shares.

Mr. Caldwell, Interim CEO of SolGold, commented:

"Our top priority is to allocate our human and capital resources efficiently
to unlock shareholder value. We are curtailing spend that is not aligned with
our value maximisation objectives including advancing nonessential studies in
this market environment that do not materially increase value. We are taking a
very disciplined approach to capital allocation. To be clear, we will continue
to progress critical work streams that are required to advance and de-risk the
Tier 1 Cascabel project that has the opportunity to bring significant benefits
to all Ecuadorians and support Ecuador to become the next copper frontier. We
will also focus on advancing our highest priority exploration targets within
our large exploration portfolio in Ecuador using our proven methodology. This
new approach is a clear shift in direction and is in alignment with feedback
received from a number of shareholders, and we look forward to continued
engagement with all stakeholders. I will ensure the SolGold team works
tirelessly to ensure all shareholders are rewarded for funding this world
class discovery in Cascabel and I would like to personally thank our
shareholders for their patience and support."

Osisko Royalty

The previously announced US$50 million royalty investment from Osisko Gold
Royalties Ltd ("Osisko") adds a fresh strategic endorsement of SolGold and is
a testament to the world class nature of the Cascabel project. The Osisko
investment represents a very attractive and accretive financing solution for
the Company and is expected to close imminently.

Cornerstone Transaction

The Transaction is anticipated to close following customary regulatory
approvals and a special meeting of Cornerstone shareholders to approve the
Transaction. The Transaction provides SolGold with the opportunity to sell the
157.1 million SolGold shares held by Cornerstone to strategic investors before
the closing of the Transaction.

Strategic Review

The Board is focused on maximising value for all shareholders. A Strategy
Sub-Committee led by Non-Executive Director, Dan Vujcic, will continue to
advance the previously announced Strategic Review as a top priority.

As previously disclosed, the Strategic Review includes, among other things,
evaluating and pursuing value enhancing opportunities for the Company such as:

·    evaluating financing alternatives for the Company that endorse
project value;

·    a spin-out of assets, other than the Cascabel project, to all
shareholders;

·    the direct or indirect sale of an interest in the Cascabel project at
prices that endorse project value howsoever effected; or

·      any other transaction or series of related transactions.

Project Advancement and Exploration

SolGold is focused on advancing Cascabel in a cost effective and value
maximising manner.

The Cascabel Project Team is rigorously reviewing all opportunities to de-risk
the project, reduce costs and further improve project economics. The Project
Team is investigating an expanded list of optimisation opportunities and
upside options including:

·    Alpala underground mine design optimisation;

·    improvements to mine and mill production rate;

·    inclusion of open pit resources including at Tandayama-America;

·    process plant design optimisation;

·    opportunities for improved metallurgical recovery;

·    improving gold recoveries;

·    capital and operating cost reduction opportunities;

·    hydropower project development; and

·    project execution strategy.

In light of the evolving capital cost environment, numerous value enhancing
aspects currently being studied and the potential positive impact of these
aspects on both capital and operating costs, it is expected that the Cascabel
Definitive Feasibility Study ("DFS") and the Porvenir Preliminary Economic
Assessment will be delayed. The Company is proceeding with the Cascabel DFS as
the next stage. A further update will be provided as value enhancing options
are assessed and the Company has a better view on potential timing for
completion of the studies.

Given exploration success has been a key driver of unlocking shareholder
value, SolGold will take a disciplined approach to continue to advance the
highest priority exploration targets at Cascabel and across the broader
portfolio applying the Company's blueprint and proven exploration methodology.
SolGold discovered and defined the resources at Cascabel for less than
~US$0.01/lb of copper equivalent or less than ~US$3/oz of gold equivalent.

Environmental baseline studies and permitting for the Cascabel project
continues. The Company continues to maintain excellent community relations in
the project area in addition to continued high level of support from the
government.

 

This announcement was approved for release by Rufus Gandhi - Company
Secretary.

Certain information contained in this announcement would have been deemed
inside information.

CONTACTS

 Rufus Gandhi

 SolGold Plc (Company Secretary)                                     Tel: +61 (0) 7 3303 0660

 Fawzi Hanano/Lia Abady

 SolGold Plc (Investors/Communication)                               Tel: +44 (0) 20 3823 2130

 investors@solgold.com.au (mailto:investors@solgold.com.au)
 /info@solgold.com.au (mailto:info@solgold.com.au)

 Tavistock (Media)

 Jos Simson/Gareth Tredway                                           Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focussed on the discovery, definition
and development of world-class copper and gold deposits and continues to
strive to deliver objectives efficiently and in the interests of shareholders.
SolGold is exploring the length and breadth of the highly prospective and
gold-rich section of the Andean Copper Belt which is currently responsible for
c40% of global mined copper production.

The Company operates with transparency and in accordance with international
best practices. SolGold is committed to delivering value to its shareholders,
while simultaneously providing economic and social benefits to impacted
communities, fostering a healthy and safe workplace and minimizing the
environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG). The Company has on issue a total of 2,296,051,501 fully paid
ordinary shares and 42,250,000 share options.

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on twitter @SolGold plc

 

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
(http://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.

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