Cornerstone Capital Resources (CGP.V; CTNXF.OTC) owns more than 20% of the largest copper-gold deposit in the world not controlled by a major.

But by mid-October, the world’s largest mining group could well make a move on the project and send Cornerstone’s market cap soaring in the process.

Dear Fellow Investor,

It’s rare to find a mining investment opportunity where the potential for a big payoff is both obvious and imminent

At this very moment, however, there’s a special situation developing for Cornerstone Capital Resources (CGP.V; CTNXF.OTC) that promises both.

Simply put, within just a few weeks one of the world’s largest copper-gold projects could go on the auction block…and Cornerstone Capital’s shareholders could be in line for one of the quickest and richest windfalls in recent mining history.

4, 3, 2, 1…Lift-Off!

Here’s the story: By focusing on the mineral riches of Ecuador during a period when foreign investment in the country was out of favor, Cornerstone was able to amass a sizeable land position.

Then, along with joint venture partner SolGold, the company discovered and outlined a world-class copper-gold deposit on its Cascabel project.

As the deposit’s massive scale became obvious, majors BHP and Newcrest placed markers on the project by investing in SolGold, in which Cornerstone itself holds a 7.6% stake (to go with its 15% carried interest in Cascabel).

Now this is where it gets interesting….

What gives this story urgency is that BHP’s unique and unusual “standstill” agreement with SolGold expires on Oct. 19, 2020.

The standstill prevents BHP from acquiring any shares in Cornerstone without SolGold’s consent unless a third party makes a move to acquire control of Cornerstone prior to Oct. 19, which would allow BHP to bid.

A separate standstill also expiring Oct. 19 prevents BHP from acquiring additional shares of SolGold or colluding with anyone to acquire control of SolGold.

After that date, BHP will be free to make a move on Cascabel…which would potentially result in a takeout of Cornerstone at a much higher share price than it’s trading for today.

A Truly World-Class Copper-Gold Resource

Why would BHP, the world’s largest mining group, make a play for Cascabel?

Because, in a world where Tier 1 copper-gold projects have become vanishingly rare, this project’s Alpala deposit stands out for its sheer scale.

In a recent story by S&P Global Market Intelligence, BHP Group CEO Mike Henry indicated that BHP would look to exploration and early-stage partnering to find its own new resources in places like Canada, Mexico, and Ecuador.

This sounds a lot like the position BHP has taken in SolGold and Cascabel.

A recent resource estimate on Alpala shows it containing a measured and indicated resource of 9.9 million tonnes of copper, 21.7 million ounces of gold and 92.2 million ounces of silver.

It contains another 1.3 million tonnes of copper, 1.9 million ounces of gold and 10.6 million ounces of silver in the inferred category.

According to a 2019 PEA on the deposit, that translates into a mine with a 55-year life …and the ability to produce an average of 207,000 tonnes of copper, 438,000 ounces of gold and 1.4 million ounces of silver annually in its first 25 years.

This project is truly massive — and massively profitable.

With an after-tax NPV, discounted at 8%, of $4.3 billion and an IRR of 25.9%, this project is obviously on the radar of the world’s major mining companies.

And with an initial capex of $2.7 billion, Alpala will require a major’s access to capital to put it into production.

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A Hostile Takeover Bid Highlights The Potential

Of course, that hasn’t stopped SolGold from giving it a try.

The Australian company owns 85% of Cascabel and, right now, is calling the shots on how the project advances.

And, after a working relationship that had been very amicable, in early 2019 SolGold made the first of what would be two hostile bids for Cornerstone.

Cornerstone’s investors promptly rejected this first bid as inadequate.

Then, in June of this year, SolGold made another hostile bid for Cornerstone, essentially for the same price as its first offer (even though gold prices are on a tear and copper is making a strong rebound from its mid-March lows).

The deal values Cornerstone at C$3.78 a share. In rejecting this second offer, the company argues that its 21.4% interest in the project argues for a much higher price.

In a recent rebuttal to SolGold’s offer, Cornerstone made the following points:

• SolGold’s offer is 56% less than the C$8.60 share acquisition price of Cornerstone’s top three shareholders

• BHP’s 13.6% interest in SolGold, acquired in 2018 and 2019, implies a C$11 price for Cornerstone

• Newcrest’s 13.6% interest in SolGold, acquired by block purchase in December 2018, implies a C$13 price for Cornerstone

• Precedent transactions for projects of Cascabel’s scale have averaged $0.07/lb. copper-equivalent, which would imply a C$18 valuation for Cornerstone

Note that those valuations range from two to well over four times Cornerstone’s current share price!

Given this, it’s easy to see why Cornerstone’s major investors again flatly rejected SolGold’s latest offer, which expires on Oct. 14, 2020.

The Investment Window Is Closing Fast

That date isn’t coincidental, as it occurs five days before Oct. 19, 2020, when BHP’s “standstill” agreement on its SolGold stake ends.

At that point, the major will be free to work with Newcrest and other investors on a deal to acquire Cascabel.

And the clock is ticking on the project: the Ecuadorian Mining Law requires a feasibility study on the project be produced by 2022.

So, if BHP wants to get their team on the ground to generate their own study in time, they’ll want to move quickly once its SolGold standstill agreement ends.

And considering the rarity of an asset of this size and profitability, whatever offer BHP makes for Cascabel is likely to be in that range of much higher valuations that Cornerstone has laid out.

But your window of opportunity here is closing fast.

As we approach Oct. 19, Cornerstone’s share price is likely to begin rising in anticipation of action on BHP’s part.

If you want to maximize your potential gains on this special situation, now is the time to do so.

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To Learn More about Cornerstone Capital Resources