Impact: Positive
SolGold announced that it has commenced an unsolicited offer to acquire Cornerstone Capital Resources Inc. (TSXV:CGP, Not Covered) in an all-share transaction, that would consist of 11 ordinary shares of SolGold in exchange for each Cornerstone share. Cornerstone currently owns ~7.7% of SolGold, whereas SolGold already owns 5.3% of Cornerstone. This transaction would help consolidate SolGold’s ownership (currently 85%) of the Alpala project, as Cornerstone currently owns 15% of the project. We believe the contemplated transaction has strong benefits for both companies.