BHP rejected in offer for SolGold stake

BHP rejected in offer for SolGold stake

The world’s largest mining company BHP Billiton (ASX:BHP) has had its offer to buy a stake in SolGold rejected by the Australian company.

BHP announced an investment programme in SolGold that would see it pay US$30 million for a 10% stake in the company and provide a further $275 million to acquire a 70% interest in SolGold’s Ecuadorian copper-gold project Cascabel.

However, SolGold executive director Nick Mather said in a press release the deal was not in the best interest of the company or its shareholders and that it was not a ‘superior proposal in comparison to the previously announced $33 million financing from Maxit and Newcrest’.

“We are very pleased to see BHP join a growing list of international mining companies that are interested in investing in SolGold; however, the current £33 million financing with Maxit and Newcrest is the preferred option at this time as it leaves us in control of this very exciting project at Cascabel,” Mather said.

“There is considerable upside in the additional 13 targets as well as the existing and growing Alpala deposit. We have developed the exploration models and strategies to an advanced level, we are well funded and we are intent on delivering and retaining that upside substantially, for all SolGold shareholders.”