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Gold & silver

Jiangxi Copper ups its approach for SolGold with 28p-a-share proposal

SolGold PLC (LSE:SOLG, TSX:SOLG, OTC:SLGGF) has confirmed it is warming to a sweetened takeover proposal from Jiangxi Copper, which has lifted its indicative cash offer to 28p a share.

At that price, the Ecuador-focused miner is valued at about £842 million.

The revised approach represents a chunky premium across multiple timeframes, roughly 43% to the pre-approach price in late November and more than double the average level over the past year.

The board has told Jiangxi that, if a formal bid is made on these terms, it would be minded to recommend it.

Jiangxi already owns 12.2% of SolGold and has lined up support from several major shareholders, including BHP, Newmont, Maxit Capital and SolGold founder Nicholas Mather.

Together, those commitments represent about 40.7% of the register, giving the proposal early momentum.

If it proceeds, the offer would be structured as a court-approved scheme of arrangement, a common takeover route in the UK that requires shareholder and court sign-off, although Jiangxi could switch to a conventional bid with regulatory consent.

One key hurdle remains: approval from Chinese authorities for outbound investment, a process Jiangxi has already begun.

The company says any bid would be fully funded through existing cash and a committed bank facility, though there is still no certainty an offer will materialise.

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