InvestorsHub Logo
Followers 51
Posts 39122
Boards Moderated 9
Alias Born 04/02/2005

Re: Lone Clone post# 899

Wednesday, 09/05/2018 8:21:37 PM

Wednesday, September 05, 2018 8:21:37 PM

Post# of 1463
BHP takes stake in Ecuadorian copper miner SolGold

https://uk.finance.yahoo.com/news/bhp-takes-stake-ecuadorian-copper-154952818.html

Jon Yeomans

The Telegraph5 September 2018

BHP Billiton has taken a minority stake in London-listed SolGold as it steps up the hunt for a new source of copper.

The FTSE 100 giant has bought a 6.1pc holding in SolGold from Guyana Goldfields for a total sum of £27m, paying 26.6p a share - a 20pc premium to its closing price. SolGold is exploring the Cascabel copper-gold project in northwest Ecuador, which is thought to be a highly prospective deposit.

BHP has declared the hunt for more copper a priority as the metal is in high demand for its conductive properties.

Chief executive Andrew Mackenzie said: “Consistent with our positive long-term outlook, copper is a key exploration focus for BHP as we seek to replenish our resource base and grow this important business.”

The Anglo-Australian miner has declared an interest in SolGold before, having had a bid to buy 10pc of the company rejected two years ago. Its offer had come with some strings attached, including a desire to appoint a member to the board. SolGold opted instead to do a funding deal with Newcrest Mining of Australia, which now has a 14.5pc stake.




View photos


Earlier this year SolGold declared itself “elated” by confirmation of a large new copper deposit called Alpala in Ecuador that could be “the tip of the iceberg”.

Chief executive Nick Mather told The Telegraph at the time: “The world is increasingly short of copper and mining companies have been remiss in not keeping up development capital to their operations.”

Analysts at Berenberg said: “Having another major mining company invested in the business speaks to the potential scale of SolGold’s exploration and development portfolio. The fact that BHP has transacted at a premium valuation is likely to be a significant positive for the shares.”

SolGold declined to comment on BHP’s investment. Its shares jumped 13.5pc to 24.24p in afternoon trade.






Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.