https://www.engineeringnews.co.za

BHP becomes SolGold's largest shareholder

The Cascabel project, in Ecuador.

The Cascabel project, in Ecuador.

25th November 2019

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

The world’s largest miner, BHP, is investing a further $22-million in London- and Toronto-listed SolGold, a move which the Ecuador-focused junior sees as an endorsement of its strategy to become a copper/gold major.

BHP acquired a further 77-million shares at 22.15p each - a premium of about 13% - in the company.

The major will also be issued 1:4 options, exercisable at 37p within five years.

The transaction makes BHP the largest shareholder in SolGold with 282 721 826 shares, or about 14.7% of SolGold’s diluted share capital, overtaking Australian gold miner Newcrest by a small margin.

“SolGold's view is that the agreement endorses its view of SolGold's commanding Ecuadorean copper and gold exploration footprint, and in particular the robust Alpala deposit,” commented SolGold CEO Nick Mather, welcoming BHP’s position.

The deal, at a premium to the market closing price of Friday and without the burden of market risk and capital raising fees, presents a strong opportunity for SolGold and its shareholders, he added.

SolGold, which owns 85% of the Cascabel project, in Ecuador, traded 12% stronger on Monday at 21.95p each by midday in London.

SolGold stated that it had invited BHP to provide secondees for the technical effort for the completion of feasibility studies at the Cascabel project and its regional exploration effort.

The involvement of BHP technical staff into the project may prompt Newcrest into making an offer for the business, analysts at London-based SP Angel said in a note to clients.

SolGold released its preliminary economic assessment (PEA) on the Alpala project in May 2019 and recently updated the PEA report to include wider metal price, capital expenditure and operational expenditure ranges. The revision indicated ranges in net present value from about $2.5-billion to about $6.1-billion.

SolGold is working on a prefeasibility study on Alpala for completion by the end the first quarter next year.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Columbus Stainless
Columbus Stainless

Columbus Stainless, based in Middelburg, Mpumalanga, is Africa’s only producer of stainless steel flat products. In addition, Columbus is the only...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.052 1.011s - 140pq - 2rq
Subscribe Now