SolGold rejects Jiangxi Copper’s takeover bid

SolGold, a copper miner focused connected Ecuador, has rejected a preliminary and conditional takeover bid from China’s Jiangxi Copper Company (JCC), the 2nd attack from the second successful little than a week.

Jiangxi Copper, which already holds a 12% involvement successful SolGold and is its largest shareholder, has offered 26p per share.

Following the announcement, SolGold shares jumped arsenic overmuch arsenic 17% to 30.65p, aft gaining astir 30% successful the erstwhile 4 sessions, according to Bloomberg.

The SolGold committee unanimously rejected a abstracted non-binding connection from Jiangxi Copper connected 23 November.

“The SolGold committee remains assured successful SolGold’s stand-alone prospects,” the institution said successful a statement.

SolGold has advised shareholders to instrumentality nary enactment portion it evaluates its adjacent steps.

SolGold was antecedently considered a imaginable acquisition people for Western miners specified arsenic BHP Group and Newmont, which are among its largest shareholders.

However, involvement from these companies diminished aft disputes implicit backing plans and the downsizing of the Cascabel excavation project.

The connection from Jiangxi Copper comes astatine a clip of heightened enactment successful the copper mining sector, with galore manufacture participants forecasting a shortage of the metallic arsenic planetary electrification accelerates.

This inclination has contributed to aggregate acquisition attempts among large miners, including a caller unsuccessful bid by BHP for Anglo American.

SolGold remains focused connected discovering and processing copper and golden deposits, holding important concessions successful Ecuador’s Andean copper loop and supporting the country’s emergence arsenic a copper producer.

In July 2024, SolGold obtained a $750m (A$1.11bn) financing bundle to beforehand the Cascabel Project successful Ecuador’s Imbabura province.

"SolGold rejects Jiangxi Copper’s takeover bid" was primitively created and published by Mining Technology, a GlobalData owned brand.

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