Solgold PLC (LON:SOLG) has reacted angrily to the almost instant rejection of its takeover approach to Cornerstone, its partner on the Cascabel copper project in Ecuador.
The Canadian group turned down the approach less than three hours after SolGold announced its intention to bid.
SolGold said it was "surprised and disappointed" that Cornerstone has dismissed the offer so quickly and questioned whether Cornerstone had time either to hold a board meeting or contact shareholders before issuing its rejection.
The offer of 0.55 of a SolGold share for each one in Cornerstone, was a 20% premium to the Canadian group’s share price when it was made.
London-listed Solgold wants to consolidate ownership of Cascabel.
It currently owns 85% of ENSA, the venture that owns the licence, with Cornerstone holding the remaining 15%.