Jiangxi Copper has increased its stake in SolGold to 12.19 percent for USD 18 million, becoming the largest shareholder. This acquisition allows greater influence over the Cascabel copper mine in Ecuador, one of the largest undeveloped copper-gold deposits globally. Despite SolGold’s current lack of revenue and operational losses, Jiangxi aims to enhance its resource reserves and will provide consulting services for the mine’s development.
Jiangxi Copper is increasing its investment in SolGold to enhance its influence over the Cascabel copper mine in Ecuador. By acquiring an additional 5.2 percent equity, amounting to USD 18 million, Jiangxi Copper will raise its total holdings to 12.19 percent, thus becoming the largest shareholder of the Australian mineral exploration company, which is listed in both London and Toronto.
Despite not currently generating revenue and reporting significant losses, SolGold owns valuable mineral resources, including the Cascabel mine, which is considered one of the world’s largest undeveloped copper-gold deposits. The mine has proven reserves of 3.2 million tons of copper, 9.4 million ounces of gold, and 28 million ounces of silver
Jiangxi Copper’s acquisition will not only strengthen its resource reserves but also bolster its standing within the industry. Consequently, the company will offer consulting services to guide the further development of the Cascabel project, indicating a strategic collaboration for both entities involved.
Following this announcement, Jiangxi Copper’s stock prices showed slight increases in both Hong Kong and Shanghai stock markets, reflecting positive market sentiment regarding the acquisition and its implications for future growth.
In conclusion, Jiangxi Copper’s strategic increase in its stake in SolGold positions the company to play a more influential role in the development of the Cascabel copper mine in Ecuador. This acquisition consolidates Jiangxi Copper’s status as a major shareholder, despite SolGold’s current operational challenges and losses. The overall benefits anticipated from this collaboration reflect the potential for significant resource exploration and development in the future.
Original Source: www.yicaiglobal.com
