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BHP adds to SolGold holding, raising stake in Ecuador copper project

Published 10/16/2018, 08:01 AM
© Reuters.  BHP adds to SolGold holding, raising stake in Ecuador copper project
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  • BHP (NYSE:BHP) nearly doubles its stake in copper developer SolGold (OTCPK:SLGGF), owner of the promising Cascabel copper-gold project in Ecuador.
  • Under the deal, which analysts say is a big vote of confidence in the quality of the Solgold project, BHP will pay SolGold £45M ($59.2M) for 100M new shares in the company, taking its interest to 11.2% from 6.1%; Newcrest Mining (OTCPK:NCMGF) is the top shareholder in SolGold with a 14.5% stake.
  • “It’s not of financial consequence for them [BHP], but it’s one of the things you need to do to get your foot on future deposits,” Morningstar analyst Mathew Hodge says of the deal.
  • Now read: Newcrest Mining: Attractively Priced Compared To Its Gold Producer Peers


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