BHP Billiton Limited clutched stakes in copper explorer SolGold

  • Sep 05, 2018 AEST
  • Team Kalkine
BHP Billiton Limited clutched stakes in copper explorer SolGold

Today morning BHP Billiton Limited announced that it has entered into an agreement with Guyana Goldfields Inc to acquire 6.1% stakes in SolGold Plc for $35.2 million. It is to buy the slice of highly coveted Cascabel copper-gold project in Ecuador which is majorly owned and operated by SolGold.

This is not the first time that BHP is knocking the doors of copper explorer SolGold. Earlier in October, BHP proposed to buy 10% stakes in SOLG for $30 million but the offer was rejected by the London listed gold and copper miner SolGold terming it as “very inadequate.”

But this morning BHP Billiton has finally grabbed a piece of highly demanded copper-gold operations. As per the terms of agreement, BHP will buy stakes of 103.1 million shares in London listed SolGold from Guyana Goldfields Inc for 27.4 million pounds ($35.2 million). That means at the purchase price of 26.592 pence per SolGold share which represents a 20% premium to the 20-day volume-weighted average LSE price of 22.16 pence per share as determined on 4 September 2018. 

BHP Chief Executive Officer, Andrew Mackenzie, said the investment in SolGold would give BHP exposure to a high-quality copper exploration project in Ecuador, which is a highly prospective location for BHP.

However, despite confirming the acquisition of 6% stakes in Ecuador copper explorer, BHP Billiton share price tumbled 1.814% to $32.480 in an early trade today, i.e. 5 September 2018 (1:29 PM AEST).

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