Jiangxi Copper is increasing its stake in SolGold to 12.19% for USD 18 million, making it the largest shareholder. This acquisition grants Jiangxi more influence over the Cascabel copper mine in Ecuador, one of the world’s largest undeveloped copper-gold deposits, despite SolGold’s ongoing financial losses. Jiangxi aims to strengthen its resource position and will offer consultancy for the mine’s development.
Jiangxi Copper is poised to enhance its influence over SolGold by increasing its stake, thus becoming the largest shareholder. This strategic move enables Jiangxi Copper to play a significant role in the development of SolGold’s primary asset, the Cascabel copper mine in Ecuador, noted for being one of the largest undeveloped copper-gold deposits globally.
The Nanchang-based company announced it will invest USD 18 million to acquire an additional 5.2 percent equity, translating to 157,141,000 shares. This acquisition will elevate Jiangxi Copper’s total holdings to 12.19 percent, solidifying its status as the top shareholder in SolGold, which operates out of Perth and is publicly traded in London and Toronto.
At present, SolGold is not generating revenue and reported a net loss of USD 60.3 million for the fiscal year ending June 30, 2024, alongside a net loss of USD 17.4 million for the six months concluding December 31, 2024. Despite these financial challenges, SolGold controls the Cascabel copper mine and other mineral projects at various exploration stages.
The Cascabel mine boasts substantial resources, featuring proven, controlled, and inferred deposits of 12.2 million tons of copper, 30.5 million ounces of gold, and 102.3 million ounces of silver, as identified in a recent pre-feasibility study. Notably, the proven reserves include 3.2 million tons of copper, 9.4 million ounces of gold, and 28 million ounces of silver.
This acquisition aligns with Jiangxi Copper’s objective to enrich its resource reserves and fortify its standing in the industry. In addition, Jiangxi Copper has committed to providing consulting services to facilitate the ongoing development of the Cascabel project.
In summary, Jiangxi Copper’s acquisition of a larger stake in SolGold positions it as the major shareholder, thus allowing greater influence over the Cascabel copper mine in Ecuador. Despite SolGold’s current lack of revenue and significant losses, the mine’s substantial resources present a promising opportunity for Jiangxi Copper to enhance its resource portfolio and industry presence. Furthermore, the company’s provision of consulting services underscores a commitment to advancing the Cascabel project’s development.
Original Source: www.yicaiglobal.com
