Working Together To Advance Cascabel Project
Cornerstone Capital Resources Inc. (TSXV:CGP/OTC:CTNXF) and SolGold Plc (TSX:SOLG/LSE:SOLG) 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 maximising value for their respective shareholders with respect to the Cascabel Project.
Liam Twigger, Chairman of SolGold, and Greg Chamandy, Chairman of Cornerstone jointly stated that 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 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.
“We are committed to fostering a positive working relationship between SolGold and Cornerstone for the benefit of our respective shareholders. Our focus remains on maximising shareholder value by cooperatively advancing Cascabel with the input of both of our respective management teams and pursuing all potential value enhancing initiatives,” the Chairmen said.
Keith Marshall, Interim CEO of SolGold, said that for too long the 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, said he welcomed this initiative.
“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.”
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, including the Cascabel gold-enriched copper porphyry joint venture in northwest Ecuador.
Cornerstone has a 20.8% direct and indirect interest in Cascabel comprised of a direct 15% interest in the project financed through to completion of a feasibility study and repayable at Libor plus 2% out of 90% of its share of the earnings or dividends from an operation at Cascabel, plus (ii) an indirect interest comprised of 6.86% of the shares of joint venture partner and project operator SolGold Plc.
Exploraciones Novomining S.A. (ENSA), an Ecuadoran company owned by SolGold and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA.
