BHP Billiton plc (BHP) has entered into an agreement with Canadian based mining company Guyana Goldfields Inc. (Guyana) to acquire a 6.1 per cent interest in SolGold Plc (SolGold), the majority owner and operator of the Cascabel porphyry copper-gold project in Ecuador.
SolGold is a copper-gold exploration company with objectives to discover and define world‐class copper‐gold deposits in Ecuador. They hold the largest exploration team and the most active exploration programme across the country. Cascabel is SolGold’s flagship project and is one of the most advanced resources project in Northern Ecuador. Under the terms of the new agreement, BHP will acquire 103.1 million shares in SolGold, which is listed on the London Stock Exchange and the Toronto Stock Exchange.
The purchase price payable by BHP equates to approximately US$35 million.
BHP’s 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.
“Consistent with our positive long-term outlook, copper is a key exploration focus for BHP as we seek to replenish our resource base and grow this important business,” Mr Mackenzie explained.
Scott Caldwell, President and CEO of Guyana said he is ‘extremely pleased’ to have entered into this sale agreement with BHP.
“The sale of our shares in SolGold will significantly strengthen our balance sheet and will leave us well positioned to deliver on our targeted production growth over the near term,” he said.
More information on the SolGold and the Cascabel porphyry copper-gold project can be found here.