SolGold, a copper miner focused on Ecuador, has rejected a preliminary and conditional takeover bid from China’s Jiangxi Copper Company (JCC), the second approach from the latter in less than a week.
Jiangxi Copper, which already holds a 12% stake in SolGold and is its largest shareholder, has offered 26p per share.
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Following the announcement, SolGold shares jumped as much as 17% to 30.65p, after gaining almost 30% in the previous four sessions, according to Bloomberg.
The SolGold board unanimously rejected a separate non-binding proposal from Jiangxi Copper on 23 November.
“The SolGold board remains confident in SolGold’s stand-alone prospects,” the company said in a statement.
SolGold has advised shareholders to take no action while it evaluates its next steps.
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By GlobalDataSolGold was previously considered a potential acquisition target for Western miners such as BHP Group and Newmont, which are among its largest shareholders.
However, interest from these companies diminished after disputes over funding plans and the downsizing of the Cascabel mine project.
The offer from Jiangxi Copper comes at a time of heightened activity in the copper mining sector, with many industry participants forecasting a shortage of the metal as global electrification accelerates.
This trend has contributed to multiple acquisition attempts among major miners, including a recent unsuccessful bid by BHP for Anglo American.
SolGold remains focused on discovering and developing copper and gold deposits, holding significant concessions in Ecuador’s Andean copper belt and supporting the country’s emergence as a copper producer.
In July 2024, SolGold obtained a $750m (A$1.11bn) financing package to advance the Cascabel Project in Ecuador’s Imbabura province.
