SolGold: BHP Group Buys Extra 4% in Company for $22 Million; Shares Rise
November 25 2019 - 5:39AM
Dow Jones News
By Anthony O. Goriainoff
Shares in SolGold PLC (SOLG.LN) rose Monday after the company
said BHP Group PLC (BHP.LN) has agreed to buy an extra 4% in the
company worth $22 million, making it SolGold's largest
shareholder.
The Ecuador-focused mining company said BHP will buy 77 million
shares at 22.15 pence each, a 13% premium to Friday's closing price
of 19.58 pence a share. The company said BHP will then own 282.7
million shares, or 14.7% of its issued share capital.
The company said BHP has agreed not to acquire further shares
in, or make an offer for, SolGold for a period of two years.
However it said BHP has a right to acquire up to 246.6 million
SolGold shares--not counting shares acquired by way of certain
permitted acquisitions--and it also has a right to make an offer
for SolGold provided it has first been approved by the company's
shareholders.
"SolGold is pleased to welcome BHP into a further position in
the company. SolGold's view is that the agreement endorses its view
of SolGold's commanding Ecuadorean copper and gold exploration
footprint, and in particular the robust Alpala deposit," Chief
Executive Nicholas Mather said.
Shares at 0955 GMT were up 12% at 22 pence.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
November 25, 2019 05:24 ET (10:24 GMT)
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