Copper Miner SolGold Faces Rebellion From Top Shareholders – by Thomas Biesheuvel (Bloomberg News – December 16, 2020)

SolGold Plc faces a possible shareholder revolt as the mining heavyweights that backed the company and its huge Ecuadorian copper deposit grow increasingly frustrated by the management’s decisions.

BHP Group is SolGold’s biggest shareholder and Australian gold major Newcrest Mining Ltd. is No. 2, having both positioned themselves for a seat at the table when it’s time to finance and build the project.

Neither was pleased with SolGold’s decision earlier this year to sell a royalty stream — while the deal provided funding, it meant giving up a piece of future profits. The company has also faced setbacks in its mine-planning process.

SolGold’s annual shareholder meeting Thursday offers a chance for investors to have their say. The company has recently made changes to its board, including adding independent directors.

Amid concerns about corporate governance, major investors BHP and Cornerstone Capital Resources Inc. were considering whether to vote against re-electing certain board members, including SolGold Chief Executive Officer and co-founder Nick Mather, according to people familiar with the matter.

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