Jiangxi Copper has intensified its pursuit of SolGold, raising its non-binding takeover offer to approximately £842 million ($1.12 billion) in a bid to secure the Ecuador-focused gold and copper miner.
The revised proposal, submitted on behalf of Jiangxi Copper Company (JCC), values SolGold shares at 28p each, representing a 7.7% increase from the previous 26p offer that was rejected by SolGold's board last month.
In a notable shift, SolGold's leadership has signaled it is now "minded to recommend" the offer to shareholders, provided Jiangxi Copper proceeds with a formal bid on these improved terms, marking a significant step toward potential consolidation.
The increased bid comes against a backdrop of surging gold prices, driven by heightened geopolitical tensions and global economic uncertainty that have bolstered demand for safe-haven assets.
This favorable pricing environment has spurred aggressive consolidation within the mining sector, as major players seek to acquire quality assets and reserves.
For Jiangxi Copper, securing control of SolGold's promising Ecuadorian projects would not only expand its footprint in the region but also strengthen its position in the metals market amid growing investor interest in gold and copper as strategic commodities.
In a related development, BHP Billiton, a wholly-owned subsidiary of BHP Group, has issued a non-binding letter of intent to Jiangxi Copper expressing its current support for the enhanced offer over its 310,965,736 shares in SolGold, representing approximately 10.3% of the company's voting rights. Read more...
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