BHP Billiton Holdings Limited (BHP) has announced to the ASX that it had increased its investment in SolGold by subscribing for 100 million new SolGold shares priced at 45p each (representing a 30% premium to the 20-day VWAP in SolGold shares), taking its holding in SolGold to approximately 11% and raising $59 million for SolGold.
As part of the arrangements announced:
- BHP has anti‐dilution rights to a 10% level for a period of two years;
- BHP is to have a right to appoint a Director to the SolGold Board, provided it does not drop below a 10% shareholding level;BHP agrees to a standstill in respect of SolGold under certain circumstances for a period of two years, but may acquire further shares with SolGold’s consent;
- BHP will support the recommendations of the Board of Directors for a period of two years in respect of SolGold Board composition;
- BHP will, for a period of two years, support the recommendations of any Independent Expert appointed by the SolGold Board in the case of shareholder approvals required in ‘change of control’ transactions on the project, SolGold itself, and any capital change resolutions required in the ordinary course of business if supported by holders of 60% of SolGold shares voting or accepting, for a period of two years
On 5 October 2018, SolGold provided an Exploration Update in relation to its flagship Cascabel Project in Northern Ecuador which, amongst other things, noted that SolGold was expecting to publish details of its revised Mineral Resource Estimate for the Alpala Deposit (within the Cascabel Project) later this year.
As previously reported by DGR Global, during September 2018, BHP Billiton initially purchased a 6% stake in SolGold. Commenting at the time of the acquisition, BHP Billiton’s CEO noted that this investment would give BHP exposure to a high‐quality copper exploration project in Ecuador, which is a highly prospective location for BHP, and that, consistent with their positive long‐term outlook, copper is a key exploration focus for BHP as they seek to replenish their resource base.
Copies of all of SolGold’s market releases are available on the company’s website.
The current value of DGR Global’s investment in SolGold is approximately $132 million.