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SolGold signals support as Jiangxi Copper returns with higher proposal

12th December 2025

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Ecuador-focused SolGold has opened the door to a takeover after Jiangxi Copper Company (JCC) returned with a sweetened all-cash proposal valuing the London-listed developer at about £842-million.

JCC has made a revised, non-binding indicative offer of 28p a share for the SolGold stock it does not already own – a 43% premium to the company’s undisturbed price before JCC’s first approach on November 19. The new price also represents a 136% premium to the 12-month volume-weighted average price.

The SolGold board, which rejected initial indicative proposals of 26p a share on November 23 and November 28, said it would now be “minded to recommend” the revised terms should JCC advance to a firm offer under Rule 2.7 of the UK Takeover Code.

The improved price has drawn immediate support from key SolGold shareholders. BHP and Newmont – each holding 10.3% of the company – have provided non-binding letters of intent in favour of the revised proposal. Maxit Capital (5.1%) and SolGold founder Nicholas Mather (2.8%) have also signalled support.

Combined with JCC’s existing 12.2% interest, letters of intent now represent 40.7% of SolGold’s issued share capital.

JCC has been a significant investor in SolGold since 2022, when it bought into the company during a recapitalisation.

If a firm offer is made, JCC intends to implement the acquisition via a court-approved scheme of arrangement. However, the Chinese group must first secure outbound direct investment (ODI) approval from Beijing. JCC has already started the clearance process.

The takeover, if formalised, would be funded through a combination of existing cash and a committed bank facility.

SolGold’s move marks a shift from its recent position, when the explorer twice rebuffed earlier approaches from JCC and urged shareholders to take no action. At the time, the company said it remained confident in its standalone strategy centred on developing the world-class Cascabel copper-gold project in Ecuador.

Edited by Creamer Media Reporter

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