SolGold provides company update

Cornerstone transaction update

The SolGold Board has acknowledged the delays in closing of the Cornerstone transaction. Closing of the Cornerstone transaction remains subject to the publication of a prospectus by SolGold to facilitate admission to listing on the Official List of the Financial Conduct Authority (FCA) and to trading on the main market of the London Stock Exchange of the consideration shares to be issued pursuant to the transaction.

Due to Canadian regulatory requirements, the company was required to publish its interim financial results for the half year ended 31 December 2022 (December financials) by 14 February 2023. Given this timing, the December financials are required to be incorporated into the UK prospectus and the company will re-submit the prospectus for approval to the FCA. Publication of the prospectus is subject to the final approval of the FCA, which may have further comments.

The company currently expects the transaction to close during the week commencing 27 February 2023 after the publication of the prospectus.

Organisational optimisation

As previously disclosed on 22 November 2022, SolGold is taking a disciplined approach to the allocation of resources. The company is undertaking initiatives to restructure the organisation, which will include a reduction in our workforce across all areas of the company, ensuring more appropriate levels of personnel are in place. The company is also taking steps to reduce the number of time zones of its operations and focusing resources in-country to best advance Cascabel and surrounding high-priority targets.

SolGold is also in the process of hiring a permanent Chief Financial Officer. This process is being led by the Audit Review Committee and is expected to be finalised in the coming weeks.

Scott Caldwell, Interim CEO of SolGold, commented:

"I remain fully committed to ensuring that all shareholders are rewarded for funding the world-class Cascabel discovery. Our top priority is closing the Cornerstone transaction and advancing the ongoing strategic review. In parallel, we are focused on optimising the organisation and ensuring a disciplined approach to the allocation of resources aligned with the company's value maximisation objectives.

The delays are inexcusable. I am leading, with the support of the Board, a swift reset in the organisation with an emphasis on creating a performance-oriented culture with accountability to all stakeholders as a core principle. As a fellow shareholder, I believe it is imperative to take bold action now, ahead of the close of the Cornerstone transaction. I am working closely with our team to ensure that the impact of any organisational change accelerates our strategic objectives. In my assessment, the weakness in the organisation has for too long been a culture of non-performance in the corporate office. However, having recently spent considerable time at Cascabel and our sites in Ecuador, I am pleased to report that we have a world-class team on the ground that effectively complements our world-class Cascabel project and other prospective assets."

Dan Vujcic, Director of SolGold, commented:

"Whilst we are disappointed with the delay, we will ensure the closing of the Cornerstone transaction and are advancing the ongoing strategic review. We have identified several functions that SolGold's team has the capacity to perform in-house at a significantly lower cost, allowing room for capital to be allocated to Cascabel and other high-priority targets to benefit all stakeholders. Cascabel has been adequately studied, and our in-house capability will ensure that the project progresses efficiently. Subsequent to the AGM, considerable time has been spent in-country to ensure stability and progress while establishing a clearer future direction."

Read the article online at: https://www.globalminingreview.com/mining/17022023/solgold-provides-company-update/