SolGold up on Ecuador project results, Canada listing
Shares in Ecuador-focused miner SolGold (LON:SOLG) got a fresh boost Friday after the company updated the market on its Cascabel copper-gold project and announced it had received an initial approval to list on the Toronto Stock Exchange (TSX).
Assay results from SolGold Cascabel asset, which has been compared to Rio Tinto’s world class Oyu Tolgoi copper mine in Mongolia, yield positive results. While results from Hole 23R at Cascabel were delayed in the laboratory, the company said Hole 24 and 25 samples show a robust mineralising porphyry as well as a high-grade panel of intense bornite mineralization.
The Australian gold miner also reported that it very soon would start trading on the TSX, which could help the company reach more Canadian investors and in turn boost demand for its shares over the medium term.
“SolGold’s strong operating capability, 85% ownership of Cascabel, extensive tenure position over a large portfolio of other promising copper gold porphyry across Ecuador, strong cash position and the endorsement of the company by one of the world’s most accomplished block cave copper gold miners, Newcrest Mining Limited, combine to make the pending TSX listing a milestone,” CEO Nick Mather said in a statement.
Having climbed almost 64% since the start of the year, investor sentiment towards SolGold appears to be quite positive, and the stock was steadily climbing Friday to trade at 39.25p in London at 2:40PM BST.
SolGold’s 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.
The South American country has been gaining ground as a mining investment destination thanks to a revised regulatory framework and a major investor engagement campaign that has already attracted around 420 applications for concessions in less than a year.
Currently, the nation’s emerging mining sector employs 3,700 people, but the government estimates the figure will rise to about 16,000 in the 2017-2020 period.