SolGold goes after rival Cornerstone Capital Resources – by Cecilia Jamasmie ( – June 30, 2020)

SolGold (LON, TSX:SOLG) is trying to buy Canada’s Cornerstone Capital Resources (TSX-V: CGP), which owns a minority stake in the Alpala copper-gold project, part of the Ecuador-focused miner’s Cascabel asset.

The C$140 million ($102m) all-stock offer, SolGold’s second attempt to take over the Ontario-based junior, would see the bidder pay C$3.90 for each Cornerstone share. That is a 22% premium to its closing price of C$3.19 on Monday.

Chief executive Nick Mather said the deal would boost the junior’s footprint in copper-rich, but underdeveloped Ecuador, while simplifying the structure of the $2.85 billion project. He highlighted that the business combination would reduce the risk of dilution and future development costs for Cornerstone shareholders.

“We invite Cornerstone investors to be a part of SolGold’s ultimate vision to become a major copper-gold mining company in Ecuador where SolGold’s award-winning exploration teams have identified a number of priority copper gold targets with similar or better prospects than even Alpala,” Mather said in the statement.

This is not the first time SolGold has made an effort to take over Cornerstone. It previously tried in both 2017 and 2018, following up last year with the first disclosed attempt.

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