Jiangxi Copper is increasing its stake in SolGold to 12.19%, becoming the largest shareholder. The USD 18 million investment will enhance its control over the Cascabel copper mine in Ecuador, despite SolGold’s ongoing financial losses. The acquisition will strengthen Jiangxi’s resource portfolio and market position, with plans to provide consulting services for the Cascabel project.
Jiangxi Copper Company is increasing its stake in SolGold, thereby becoming the largest shareholder. This strategic move aims to strengthen the company’s influence over the development of SolGold’s significant asset, the Cascabel copper mine in Ecuador, known as one of the largest undeveloped copper-gold deposits globally.
The company will invest USD 18 million to acquire an additional 5.2 percent equity, amounting to 157,141,000 shares in SolGold, as stated in an asset purchase agreement between the two entities. Consequently, Jiangxi Copper’s total holdings will rise to 12.19 percent, solidifying its status as the leading shareholder of Perth-based SolGold, which is traded on both London and Toronto stock exchanges.
Despite not currently generating revenue and reporting a net loss of USD 60.3 million for the fiscal year ending June 30, 2024, and a further net loss of USD 17.4 million in the subsequent six months, SolGold possesses valuable assets. These include the Cascabel copper mine alongside several other mineral exploration projects at various stages.
According to a recent pre-feasibility study, the Cascabel mine boasts proven, controlled, and inferred resources of 12.2 million tons of copper, 30.5 million ounces of gold, and 102.3 million ounces of silver from its main deposits. It also contains proven reserves of 3.2 million tons of copper, 9.4 million ounces of gold, and 28 million ounces of silver.
This acquisition is expected to enhance Jiangxi Copper’s resource reserves and strengthen its market position. Additionally, Jiangxi Copper will provide consulting services aimed at advancing the development of the Cascabel project.
In conclusion, Jiangxi Copper’s acquisition of a larger stake in SolGold positions it as the leading shareholder, ensuring increased influence over the Cascabel copper mine project in Ecuador. Despite SolGold’s current financial challenges, the valuable resources at Cascabel highlight the strategic significance of this investment for Jiangxi Copper’s growth and sustainability in the industry.
Original Source: www.yicaiglobal.com
