Core Gold Inc. (fka CGLDF)

[NYBob]

OT. Cornerstone cries foul over timing of SolGold’s hostile offer
8th March 2019
By: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online

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TSX-V-listed Cornerstone Capital Resources has rejected dual-
listed SolGold’s unsolicited proposal to acquire the company,
arguing that it undervalues its business, and also called into
question the timing of the proposed bid in the lead-up to the
release of the preliminary economic assessment (PEA) of the
Cascabel project, in Ecuador.

In a letter dated March 8, the Cornerstone board said that it
rejected the proposed hostile bid without actually having
received the formal bid from SolGold and laid into the company
for a “consistent track record of delays”.

Cornerstone stated that the timing of the proposed bid was
“highly suspect”, stating that it believed SolGold wanted to
exploit inside knowledge about Cascabel prior to the release
of the PEA and before material information was
disseminated to the market.

A PEA for Cascabel –
a major copper discovery that has attracted significant
international interest –
has been delayed to the second quarter of 2019, said Cornerstone,
which has a 15% carried interest in the Ecuadorian company that
holds the project.

It further stated that the proposed hostile bid would pre-empt
Cornerstone’s ability to enter into a transaction with third
parties, such as diversified major BHP, given a standstill that
did not expire until October next year.

SolGold, which trades on the London and Toronto exchanges,
previously said that it would take a proposed offer directly to
Cornerstone’s shareholders, after that company’s board rejected
its advances in “record time”.

SolGold is proposing an all-stock transaction of 0.55 a share for
every Cornerstone share held, which it argues is a
20% premium to the takeover target’s share price.
At current market prices, this will be about C$0.35 a share, or
about C$226-million for all the outstanding common shares of
Cornerstone.

Cornerstone chairperson Greg Chamandy said that the proposal
undervalued the company.
“A fact that has clearly been recognised by our shareholders
with holders of approximately 59% of the outstanding common
shares having now advised Cornerstone that they
will not support SolGold’s proposed bid.”

Given that Canadian takeover rules require the majority of
Cornerstone’s outstanding common shares to be tendered to a
formal offer before any shares can be taken up,
Cornerstone does not see how the hostile bid could be
completed without sufficient shareholder support.

Edited by: Creamer Media Reporter

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http://www.miningweekly.com/article/cornerstone-cries-foul-over-timing-of-solgolds-hostile-offer-2019-03-08/searchString:Ecuador

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God Bless

Ps.
Loma Larga to be Ecuador’s next large-scale development

By: Mariaan Webb 30th November 2018 One of the five so-called strategic mining projects of Ecuador –
Loma Larga – has received a positive feasibility study and is now
on the path to accelerated development, with project developer
IVN Metals aiming to break ground in early 2020.
The feasibility study calculated, on an after-tax... ?