It’s no secret that 2015 will probably be recorded as the most difficult year in the commodity markets in a generation. All commodities
Solitario and our shareholders shared in the pain of the stressed
I would like to review the Mt. Hamilton asset sale to emphasize the benefits that accrued to Solitario and our shareholders. Solitario closed the sale on its 80% interest in the Mt. Hamilton gold project on August 25. 2015. Solitario received $24 million in cash for its 80% interest from Waterton Precious Metals Fund II Cayman, LP, a private equity fund. With the proceeds, Solitario paid-off its $5.0 million in debt and approximately another $1.0 million in transaction costs, leaving about $18 million in cash and no debt. As of March 31, 2016, we have a cash balance of a little more than $17 million, and that is after we have purchased approximately 300,000 shares of
The Mt. Hamilton transaction valued our Measured and Indicated resources at approximately $50 per ounce of recovered gold – definitely on the higher end of 2013-2015 transactions for undeveloped North American gold projects. We recorded a gain of nearly $10
So now what are we doing with our newly energized balance sheet? Simply stated, we are entirely focused on identifying, negotiating and acquiring the best assets in a politically acceptable country that we can find at an attractive transaction price. To be a little more specific, we are evaluating precious metal and zinc opportunities that fit one of the following criteria:
We believe that Solitario’s technical and financial strengths match-up well with these target objectives to achieve significant post-
We have identified a number of projects and companies that meet our objectives and are discussing with various third parties the potential to do a mutually beneficial transaction. To date we have made a strategic 9.99% equity investment in Vendetta Mining that owns 100% of a high-quality lead-zinc project in Australia.
Work on our high-grade Bongará zinc project in Peru is centered on obtaining a community agreement and permits to conduct a future significant drilling program. Milpo Mining, our joint venture funding partner, is managing this program. We are working independently on negotiating a community agreement on our 100%-owned La Promesa polymetallic (gold-silver-zinc-lead) project in central Peru.
Transactions on high-quality assets do take time and we will be totally thorough in our due diligence and negotiation processes. We remain confident that we will make a milestone transaction in 2016 and see our share price reflect this.
Solitario Exploration & Royalty Corp.
4251 Kipling Street, Suite 390; Wheat Ridge, CO 80033 | Tel: 303-534-1030; Fax: 303-534-1809