Solgold issues shares to Jiangxi Copper (Hong Kong)
Solgold [SOLG-TSX, LSE] has announced that investors, including Jiangxi Copper (Hong Kong) Investment Co. Ltd., have agreed to purchased 180 million shares of Solgold for US$0.20 per share. Jiangxi has agreed to purchase 155 million of the investment shares, which are expected to raise gross proceeds of US$36 million.
Closing of the investment is subject to the completion of due diligence by Jiangxi. Assuming that Jiangxi is satisfied with its due diligence review, the investment will close on December 9, 2022 and Jiangxi will own 6.3% of the issued ordinary shares of Solgold.
Solgold shares were unchanged at 29.5 cents, and currently trade in a 52-week range of 67 cents and 19 cents.
“I am very pleased to have Jiangxi become an investor in SolGold,’’ said Scott Caldwell, Interim CEO of Solgold. “They are a highly accomplished mining company and more importantly, 100% aligned with Solgold in ensuring all stakeholders are treated respectfully and fairly,’’ he said. “Jiangxi is a substantial investor in numerous mining enterprises globally and their presence will be a great benefit to Ecuador and SolGold.’’
Solgold recently agreed to acquire all the outstanding shares of Cornerstone Capital Resources Inc. [CGP-TSX, CTNXF-OTC, GWN-F] it does not already own by way of a court-approved plan of arrangement.
Solgold said the acquisition would consolidate ownership of the Cascabel Project along with a robust portfolio of other projects primarily across Equador.
Back in April, 2022, the company’s said results of a new pre-feasibility study indicates that the Cascabel joint venture in northern Ecuador is expected to be a top 20 South American copper gold mine.
It is a project that is expected to benefit from a high-grade core, advantageous infrastructure and an increasingly investor-friendly government. “The mine is expected to produce a clean copper-gold-silver concentrate that will be sold to Asian and European smelters,’’ the companies have said.
The Cascabel Project is a porphyry copper-gold deposit located in the Imbabura province of northwestern Ecuador, which lies within the under-explored northern section of the richly endowed Andean Copper Belt.
Exploraciones Novomining S.A. (ENSA) an Ecuadorian company owned by SoldGold and Cornerstone, holds a 100% interest in the Casabel concession. Subject to the satisfaction of certain conditions, including SolGold’s commitment to fully fund the project through to feasibility, SolGold will own 85% of the equity of ENSA and Cornerstone will own the remaining 15%. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project.
Cornerstone previously held 6.85% of the shares of SolGold, leaving Cornerstone with a total direct and indirect interest of 20.8%. The companies have said a definitive feasibility study is expected to be completed by the first half of 2023.