SolGold (OTCPink:SLGGF,LSE:SOLG) has confirmed that it received and has once again rejected a preliminary, conditional, non-binding proposal from Jiangxi Copper (OTCQX:JIXAY).
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.
According to the company, its board has again decided to reject the proposal, citing 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 holds a strong presence in Ecuador’s Andean copper belt.
Its flagship asset is the Cascabel project, located in the Imbabura province in northern Ecuador.
Cascabel’s February 2024 pre-feasibility study highlighted an average production of 123,000 tonnes per annum of copper, 277,000 ounces per annum of gold and 794,000 kilo ounces per annum of silver.
This comes with a 182,000 tonnes per annum copper equivalent, “with peak copper production of 216,000 tonnes per annum.”
Based on its updated mineral reserve estimate, the project holds 540 million tonnes (Mt) containing 3.2 Mt copper at 0.60 percent, 9.4 million ounces gold at 0.54 grams per tonne (g/t) and 28 million ounces silver at 1.62 g/t over an initial 28-year mine plan.
SolGold said that Cascabel is positioned to emerge as a top copper and gold mine in South America, holding 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 statement read.
“SolGold is committed to pioneering carbon-neutral operations in large-scale copper concentrate mines, contributing to a greener global economy through proactive environmental stewardship.”
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.