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Tuesday, October 11, 2016

Rear entry into Sol Gold

Here is an interesting question, SolGold only own 85% of the project, the remaining 15% is owned by Cornerstone Capital Resources Inc. (CGP.V - link)

They also trade on the Pink Sheets - OTC:CTNFX (link)

Let us compare their Market Caps (dated 10th Oct 2016)
  • SolGold = £194M pounds (CND$315M - using a 1.63:1 ratio)
  • Cornerstone = CND$34.2M.
So Cornerstone is valued at just 11% of SolGold, but they own 15% of Cascabel as well as additional projects in Ecuador and a large chunk of desert in Chile. This suggests that the enterprise of their shares should be ~CND$0.18/share (a 50% premium on today's price) just for Cascabel and they have the potential value for their projects.

This suggests that Cornerstone could be a potential rear entry into Cascabel or maybe they will be a  hemorrhoid and SolGold will be looking to buy them out (especially at these prices) so that they can consolidate ownership over this very interesting project?

UPDATE - damn my laziness, if only I had posted this yesterday, I could have called myself a geni-arse.

UPDATE 2: Exupery left a comment that a company called DGR Global own 17% of Solgold, they are listed on the ASX (symbol DGR). They have a market cap of ~US$30.5M, so that is a big discount compared to SolGold suggesting a 60% upside potential.