In This Article:
Jiangxi Copper has signed a share purchase agreement to increase its stake in Australian gold mining company SolGold to 12.19% from 6.95%.
As per the deal, Jiangxi Copper subsidiary Jiangxi Copper (Hong Kong) Investment will purchase 157,141,100 ordinary shares in SolGold at $0.115 each, totalling approximately $18m (130.44m yuan).
The acquisition price is a 45% premium over SolGold's closing share price on 11 March 2025.
The investment is subject to customary conditions precedent and the green light from Chinese regulatory authorities.
Jiangxi's current shareholding in SolGold amounts to 208,616,587 ordinary shares. Post-investment, the company will own 365,757,587 shares in SolGold.
The company said it is acquiring the purchased shares in SolGold for investment purposes and may adjust its stake in the future through various means.
SolGold CEO Dan Vujcic said: “As we endeavour to re-shape and streamline the SolGold investment proposition this investment by Jiangxi, at a substantial premium to Monday's closing price, is a powerful endorsement towards the intrinsic value embedded in SolGold.
“SolGold is very fortunate to have multiple high-quality shareholders and financiers who are willing and able to assist the company in progressing Cascabel and its highly prospective exploration portfolio.”
SolGold is planning to use the proceeds to bolster its balance sheet and advance shareholder value, particularly to develop the Cascabel copper and gold project in Ecuador.
Jiangxi may also offer technical consulting to SolGold related to the Cascabel project until March 2027, subject to mutual agreement.
In March 2024, Jiangxi Copper acquired an additional stake in Canadian metals company First Quantum Minerals for C$287.5m ($212m).
"Jiangxi Copper to increase stake in SolGold to 12.19%" was originally created and published by Mining Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.