SolGold directors recommend Jiangxi Copper
The directors of copper and gold company SolGold have thrown their weight behind a takeover offer by Jiangxi Copper Company (JCC), saying shareholders should do the same at an upcoming meeting.
In a company update on Monday, SolGold directors “unanimously recommended” and “strongly encouraged” shareholders to vote in favour of the scheme at the February 23 meeting in London.
JCC is offering SolGold shareholders 28p a share for the stock it does not already own, which is a 43% premium to the copper developer’s undisturbed price before a first takeover approach on November 19.
JCC’s offer has received support from the top five SolGold shareholders, including BHP, Newcrest, Maxit Capital, DGR Global and the company’s directors, including Nicholas Mather. This represents support from shareholders representing about 47.3% of SolGold’s issued share capital.
SolGold also cautioned shareholders that it would need to raise more cash to continue development of the Cascabel project, in Ecuador, as early as the second quarter of the year.
“Having reviewed SolGold's options for raising this financing, the SolGold board anticipates this financing would likely take the form of issuing new equity to existing and potentially new shareholders. The terms of this equity financing are uncertain and would potentially be done at a material discount to the JCC offer price,” the company said in its update.
JCC has been a significant investor in SolGold since 2022, when it bought into the company during a recapitalisation.
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