SolGold PLC CEO Nick Mather opened the door to the company's second largest shareholder, BHP Group, to increase its stake in SolGold, Reuters reported May 20.
In October 2018, BHP raised its interest in SolGold to 11.2% from 6% after a £45 million share subscription agreement. As part of the deal, the mining giant agreed on a two-year moratorium on buying additional shares, subject to certain exceptions.
BHP declined to comment, the report said.
SolGold owns 85% of the Cascabel porphyry copper-gold project in Ecuador. A recent preliminary economic assessment for the project's Alpala copper-gold-silver deposit outlined a net present value of US$4.1 billion to US$4.5 billion, discounted at 8%, and an internal rate of return of 24.8% to 26.5%.
Mather told the newswire that SolGold is in talks with potential investors over Cascabel. The executive declined to name the parties involved but said the company was open to all types of financing structures.