SunSirs: Jiangxi Copper Acquired SolGold for Over $1.1 Billion

On December 24th, Eastern Time, SolGold announced that it has accepted the terms of its largest shareholder Jiangxi Copper's all-cash acquisition of all issued and to be issued common shares of Solgold for over 1.1 billion US dollars. Under the terms of the acquisition, shareholders of Sol Gold are entitled to receive 28 pence in cash per share. The cash consideration values Sol Gold's entire issued and forthcoming share capital at approximately £867 million (about $1.1723 billion). This offer represents a 43% premium over the share price of SolGold on the day before Jiangxi Copper made its first takeover offer in November. At present, BHP Billiton and Newmont, both holding more than 10% of the shares, have expressed their support for this acquisition offer. Other investors such as Maxit Capital LP have also given their support. These shareholders hold a combined 40.7% of the shares. The acquisition deal will enable Jiangxi Copper to control the Cascabel project in Ecuador and own one of the largest undeveloped copper-gold deposits in South America. The Cascabel project is located in Imbarra Province, Ecuador. Its main Alpala deposit has proven, controlled and inferred resources of 12.2 million tons of copper, 30.5 million ounces (about 865 tons) of gold and 102.3 million ounces (about 2,900 tons) of silver. The pre-feasibility study of this project was completed in 2024, and it is planned to start the early engineering in 2026 and achieve the first production in 2028. According to the pre-feasibility study report, the mine is expected to have an operating cycle of 28 years, with an average annual copper output of 123,000 tons, 277,000 ounces of gold (about 7.85 tons), and 794,000 ounces of silver (about 22.51 tons). During the peak production capacity stage, the annual copper output is expected to exceed 216,000 tons. Apart from the Cascabel project, SolGold also holds a large number of exploration licenses in Ecuador.

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