Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
SolGold (LSE: SOLG; TSX: SOLG) announced Wednesday that certain investors have agreed to purchase 180 million shares of the company at a price of $0.20 per share for gross proceeds of $36 million.
Among the new investors is Jiangxi Copper, a Hong Kong-based investment company, which is expected to purchase 155 million shares. Closing of the investment, which is subject to due diligence and is expected next month, Jiangxi will own about 6.3% of SolGold’s ordinary share capital.
“I am very pleased to have Jiangxi become an investor in SolGold. They are a highly accomplished mining company and more importantly, 100% aligned with SolGold in ensuring all stakeholders are treated respectfully and fairly,” SolGold’s interim CEO Scott Caldwell said in a news release.
“This also clearly demonstrates another step forward on my previously announced commitment, to ensure the SolGold team works tirelessly to ensure shareholders are rewarded for funding this world class discovery in Cascabel,” Caldwell added.
SolGold’s Cascabel project, located in the Imbabura province of northwest Ecuador, is one of the most ambitious mining projects in a country that is keen to develop mineral resources to spur its sluggish economy.
Over the last two years, Ecuador has attracted a flurry of interest from big miners looking to increase their exposure to copper, and Cascabel is seen as one of its most prized assets. Amongst the key players invested in the project are BHP and Newcrest.
According to the pre-feasibility study published in April, annual production will average 132,000 tonnes of copper, 358,000 ounces of gold and 1 million ounces of silver during its 55-year life-of-mine, making it potentially one of the 20 largest copper-gold mines in South America.
Read more: SolGold delays Cascabel DFS, Porvenir PEA as it looks to cost reduction
Comments
Manco Capac
Maybe they got tired of waiting for something to happen at Galeno in Peru ??