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SolGold's board remains confident in the company's standalone prospects as takeover interest continues.
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SolGold (LSE:SOLG,OTC Pink:SLGGF) confirmed that it received and has once again rejected a preliminary, conditional, non-binding proposal from Jiangxi Copper (HKEX:0358,SHA:600362,OTC Pink:JIAXF).
Pitched at 26 pence (US$0.34) per ordinary share, the offer to acquire the entire issued and to-be-issued share capital of the company was Jiangxi’s second attempt in recent weeks.
An earlier non-binding proposal on November 23 was unanimously rejected by SolGold’s board.
In its rejection, SolGold's board cited confidence in the company’s standalone prospects.
“Shareholders are advised to take no action in relation to the proposal,” SolGold wrote.
“A further announcement will be made when appropriate.”
Focused on discovering and developing world-class copper and gold deposits, SolGold has a strong presence in Ecuador’s Andean copper belt. Its flagship asset is the Cascabel project, located in Imbabura province.
Cascabel’s February 2024 prefeasibility study highlights average annual production of 123,000 metric tons of copper, 277,000 ounces of gold and 794,000 ounces of silver, equating to 182,000 copper equivalent metric tons.
Peak copper production is expected at 216,000 metric tons of the metal per year.
The asset has an initial 28 year mine plan of 540 million metric tons containing 3.2 million metric tons of copper at 0.6 percent, 9.4 million ounces of gold at 0.54 grams per metric ton (g/t) and 28 million ounces of silver at 1.62 g/t.
SolGold said that Cascabel is positioned to emerge as a top copper and gold mine in South America. The company believes it has the potential to be among the top 20 in the world.
“We are dedicated to minimizing Cascabel’s carbon footprint, exploring strategies such as maximizing hydro-generation power and enhancing operational efficiency,” the company's press release reads.
“SolGold is committed to pioneering carbon-neutral operations in large-scale copper concentrate mines, contributing to a greener global economy through proactive environmental stewardship.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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Gabbie graduated with a journalism degree from Colegio de San Juan de Letran - Manila and has produced articles on a variety of topics, such as infrastructure, business and technology. Her creative portfolio includes written work on architecture, art and design. Gabbie covers the Australian market for the Investing News Network, focusing on the mining sector.
When not in front of her desk, she is out scanning through vinyl records, exploring the international coffee culture and fighting for queer rights.
When not in front of her desk, she is out scanning through vinyl records, exploring the international coffee culture and fighting for queer rights.
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Gabbie graduated with a journalism degree from Colegio de San Juan de Letran - Manila and has produced articles on a variety of topics, such as infrastructure, business and technology. Her creative portfolio includes written work on architecture, art and design. Gabbie covers the Australian market for the Investing News Network, focusing on the mining sector.
When not in front of her desk, she is out scanning through vinyl records, exploring the international coffee culture and fighting for queer rights.
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