Jiangxi Copper is raising its equity stake in SolGold to 12.19%, becoming the largest shareholder. The USD 18 million investment focuses on the development of the Cascabel copper mine in Ecuador, which holds significant untapped mineral resources. This acquisition enhances Jiangxi Copper’s industry position despite SolGold’s ongoing losses.
Jiangxi Copper is increasing its investment in SolGold by acquiring an additional 5.2% equity stake, amounting to USD 18 million. This transaction allows Jiangxi Copper to secure a total ownership of 12.19%, making them the largest shareholder in the company, which operates the Cascabel copper mine in Ecuador, one of the world’s largest undeveloped copper-gold sites.
Currently, SolGold is not generating revenue and reported a net loss of USD 60.3 million for the fiscal year ending June 30, 2024. Additionally, it noted a net loss of USD 17.4 million in the first half of fiscal year 2025. Despite these losses, SolGold holds significant assets, including the Cascabel copper mine and other mineral projects at various exploration stages.
The Cascabel mine boasts substantial resources, with 12.2 million tons of copper, 30.5 million ounces of gold, and 102.3 million ounces of silver, as per a recent pre-feasibility study. Proven reserves include 3.2 million tons of copper, 9.4 million ounces of gold, and 28 million ounces of silver.
By enhancing its stake, Jiangxi Copper aims to improve its resource reserves and strengthen its industry position. Following the acquisition, Jiangxi Copper intends to offer consulting services to aid in the development of the Cascabel project.
On the stock market, Jiangxi Copper’s shares saw a minor increase of 0.3%, closing at HKD 13.46 in Hong Kong and CNY 22 in Shanghai.
Jiangxi Copper’s increased stake in SolGold positions the company to have more influence over the future development of the Cascabel copper mine. Despite SolGold currently operating at a loss, the strategic acquisition strengthens Jiangxi Copper’s resource portfolio and underscores its commitment to expanding its operations within the mining sector in Ecuador, which is rich in untapped mineral resources.
Original Source: www.yicaiglobal.com
