Cornerstone Capital Formal Rejection of SolGold Takeover Bid No Surprise, Says Former President and CEO Glen McKay

Cornerstone Capital Formal Rejection of SolGold Takeover Bid No Surprise, Says Former President and CEO Glen McKay: The board of directors of Cornerstone Capital Resources has formally rejected an unsolicited hostile takeover bid from JV partner SolGold. The two companies are working together on the Cascabel Project in northern Ecuador, which industry watchers believe could house one of the world’s largest gold-copper deposits.

Cornerstone Capital Formal Rejection of SolGold Takeover Bid No Surprise, Says Former President and CEO Glen McKay

CEO Glen McKay

In a news release, Cornerstone noted that an independent committee of the Board of Directors conducted a detailed review of the bid, concluding that it is not in the best interests of Cornerstone’s shareholders.

“The Board is unanimous that SolGold’s proposal substantially undervalues Cornerstone, a fact that has clearly been recognized 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,” said Greg Chamandy, chair of the Cornerstone board.

SolGold is offering 0.55 of a SolGold share for each Cornerstone common share tendered into the proposed hostile did. At current market prices, Cornerstone says this would be approximately $0.35 per common share, or total consideration for all of Cornerstone’s outstanding common shares of approximately $226 million. “The Board views this consideration as inadequate based on the substantial value of Cornerstone’s assets.”

SolGold, which is the operator of the Cascabel project with an 85% share, made its preliminary bid public in late January. Cornerstone owns the remaining 15% of Cascabel and has a 9% stake in SolGold, for a total consideration of approximately 23%. Other major gold miners hold a minority interest in SolGold, including BHP Billiton and Newcrest Mining.

In a recent interview, Cornerstone Capital’s former president and CEO Glen McKay, who was instrumental in the acquisition of the Cascabel site in 2011, said that the SolGold bid was poor, significantly undervaluing Cornerstone’s value. “They may still come with a [formal] offer but it will be a waste of time and money to do so,” he added. SolGold’s detailed preliminary offer was released in late January.

In a letter to SolGold’s board of directors, Cornerstone suggests that the two companies conduct a formal auction for 100% of Cascabel with all potential acquirers, including BHP and Newcrest. “This would level the playing field plus all remaining assets in our respective companies would be spun-out to our respective shareholders,” the letter states. “Otherwise SolGold can continue down the current path of a failed hostile bid and SolGold shareholders are likely to face a creeping takeover and never receive a proper control premium.”

For his part, Glen McKay, who remains a significant shareholder in Cornerstone, believes there will be some action on the Cascabel front, and sooner rather than later. Newcrest Mining has signed two major joint venture deals with Cornerstone in 2019, he notes, including an agreement on the Cana Brava project in Ecuador and the Miocene property in Chile.

McKay sees the deals as an indication that Newcrest is positioning itself for a bid by strengthening its relationship with Cornerstone. “If I had to make a bet, I would say that Newcrest is the front runner,” he says. “I think something will happen before the end of 2019.  We’re hoping that another interested player comes in and starts a bidding war.” Judging by Cornerstone’s letter to SolGold’s board, that’s exactly what Cornerstone is hoping for.



from Chop News https://ift.tt/2CFNhfU

Comments

Post a Comment

Popular posts from this blog

Where To Find Undetected Black Ops Cold War Hacks? | RVCJS

Image
Black Ops Cold War hacks are highly popular and there’s absolutely no question about it. If you regularly play the game on PC, there’s no doubt you haven’t encountered at least a few players that have used said Cold War hacks. You’ve probably thought about using them too at least once or twice, but haven’t done so because of a fear of getting banned. Luckily, there’s now a great solution for that which we’ll be discussing more about today. This solution is undetected Cold War hacks.  The Key Points to Keep in Mind Hacks for Cold War are very popular, but it’s very risky to use them.  Once you get banned, there’s no chance of recovering your account, which is why undetected hacks are a necessity.  Not all ‘’undetected’’ are truly undetected. You have to clearly decide which of them you choose.  Battlelog.co is the most trustable cheat provider of all in this department, as they offer truly amazing undetected Black Ops Cold War hacks .    Ho...
Read more

How to Manage Your Spinal Cord Injury in Arizona

Image
How to Manage Your Spinal Cord Injury in Arizona:  Arizona is a prosperous state in the United States, with a population of more than seven million people in 2019. It has a robust economy with an unemployment rate of 5.1% during the year. The state also posted a 2.7% job growth in 2018-2019, mainly driven by its healthcare industry. One of the growing segments in the state’s healthcare sector is medical cannabis. Experts recommend it to treat ailments like chronic pain and spinal cord injuries (SCI). However, you need to have a medical marijuana card in Arizona to buy medical cannabis legally. How to Manage Your Spinal Cord Injury in Arizona When to Seek Medical Help for Your SCI The National Spinal Cord Injury Association claimed an estimated 450,000 Americans are living with SCI. Also, there are around 17,000 new SCI cases in the U.S. every year. If you are an SCI sufferer, you should go to the hospital immediately if you experience one or more of the following symptoms af...
Read more

Jaydev Compares Cutting Beans With Pujara’s Ranji Final Innings, Gets A Hilarious Reply From Him | RVCJS

Image
The Indian cricketers are presently sitting inside their houses as the coronavirus outbreak has compelled each one of us to remain indoors to save ourselves from getting infected. While some players are getting active on social media networks and interacting with their fans or colleagues, several others are letting their fans know how they are spending time in the 21 days lockdown period. Indian cricketer Jaydev Unadkat under whose captaincy the Saurashtra team won the Ranji Trophy recently took to the micro-blogging site Twitter and posted a photo in which he showed the vegetables that he chopped. He also wrote heartwarming message for his mother as she has done such things infinite times but never showed off. Jaydev Unadkat’s tweet read, “By, Yours truly.. To, The Mother.. (who does it infinite times without any such show-off & appreciation)  #QuarantineLife” By, Yours truly.. To, The Mother.. (who does it infinite times without any such show-off & appreciation) #Q...
Read more