SolGold (LSE & TSX code: SOLG) (“SolGold”) and Cornerstone Capital Resources Inc. (TSXV:CGP; OTC:CTNXF; FWB:GWN) (“Cornerstone”) (together the “Parties” and individually, a “Party”) are pleased to announce today they 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 maximizing value for their respective shareholders with respect to the Cascabel Project.
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 each 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.
Mr. Twigger, Chairman of SolGold, and Mr. Chamandy, Chairman of Cornerstone, jointly stated: “We are committed to fostering a positive working relationship between SolGold and Cornerstone for the benefit of our respective shareholders. Our focus remains on maximizing shareholder value by cooperatively advancing Cascabel with the input of both of our respective management teams and pursuing all potential value enhancing initiatives.”
Keith Marshall, Interim CEO of Solgold commented: “For too long our 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, commented: “I am welcoming this initiative and 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.”
Brooke Macdonald, President and CEO of Cornerstone, added: “Our focus is aligned with respect to lowering the development risk at Cascabel and accessing the high-grade core at Alpala that currently has 442MT at 1.40% CuEq in the measured & indicated category including 359MT at 1.47% CuEq in the measured category alone based on MRE#3 [1].”
