Australia’s largest gold producer has signed an option and farm-in agreement with Toronto-listed Cornerstone Capital Resources over two early stage projects in Ecuador.
SolGold Mining News
SolGold is frustrated at the rejection of its planned bid for Canadian firm Cornerstone, which holds 15% of the Cascabel copper-gold project in Ecuador.
Miner has unveiled plans to make an all-share offer for Cornerstone Capital Resources, a Canadian firm that has a 15% interest in SolGold's coveted Cascabel copper-gold project.
As mining projects face headwinds from rising tensions, investors' courage will be tested, says Fitch Solutions Macro Research, which could hinder Ecuador’s plan to attract $4 billion to the sector by 2021.
Company has discovered a new copper and gold mineralization at its Porvenir project, located in southern Ecuador.
Newcrest Mining has upped its holdings in Ecuador-focused explorer SolGold to 15.33% from 13.83%, nudging further ahead of the company's second biggest shareholder BHP.
SolGold said that its Alpala project in Ecuador's Cascabel region was around double the size and grade quality it was known to be in December 2017.
Results suggest that exploration and building remains the riskier but potentially more cost-effective alternative
BHP has agreed to pay 45 pence per SolGold share.
For the 12 months to June, SolGold's pre-tax loss was A$15.3 million, compared to $8.3 million it recorded a year before.
BHP will gain access to SolGold's Cascabel project, in northern Ecuador, believed to have the potential to become one of the largest copper-gold assets ever discovered.
Company believes its Cascabel copper-gold project, 180 km north of the capital Quito, may become one of the largest copper-gold porphyry systems ever discovered.
Up 8% at the open after intersects add more bulk to already massive Cascabel copper-gold project in north of South American country.
Results from 11 of the 12 drilling rigs at its 85%-owned Cascabel copper-gold project, suggest there is much more intense mineralization in the property than thought earlier, the company said.
And 12.3m contained ounces of gold.
Brisbane-based company promised maiden resource for Cascabel copper-gold porphyry on the Andean belt before the end of the year.
The Ecuador-focused miner said it has discovered "promising" new copper prospects at the Porvenir and Timbara projects, with rock chip samples graded up to 4.27% copper.
The Cascabel project is located in the northern portion of the Andean copper belt in Ecuador, renowned for hosting almost half the world’s copper known reserves.
Having climbed almost 64% since the start of the year, investor sentiment towards SolGold appears to be quite positive.
The placing is at a 15% premium to SolGold's closing price on Thursday and at a 12% discount to its peak share price of 46.75p on May 26.