LONDON--SolGold PLC (SOLG.LN) said Thursday it has received a more favorable cash investment proposal from Maxit Capital LP.

Late last month the Brisbane, Australia based, copper gold exploration and development company SolGold proposed to raise $10.7 million via a share subscription agreement with gold miner Newcrest International and its parent, Newcrest Mining Ltd. (NCM.AU). The company said Newcrest will subscribe 135.7 million shares at 8 cents per share.

Earlier this month SolGold recommended that shareholders approve the issue of shares to Newcrest, subject always to no competing proposal being received and recommended by the SolGold board.

SolGold said Thursday it has received a proposal from Maxit Capital LP offering to arrange a cash investment into SolGold at a price of 16 cents per share. The raising is proposed to be for $20 million.

As part of the competing proposal received, Maxit has advised that Newcrest may participate in the further raising by advising before close of business on Sept. 23, their participation to the extent of subscribing to 10% of the expanded issued capital of SolGold also at 16 cents for $22.863 million.

Maxit and its clients would in that case subscribe for $10.137 million at 16 cents per share, resulting in a total raising of $33 million, SolGold said Thursday.

SolGold said it will advise the market of developments and recommends that shareholders wait for further advice ahead of lodging any proxy votes for the general meeting to be convened on Oct. 13.

Shares at 0910 GMT up 2.8% at 14 pence, valuing the company at GBP166.6 million.

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

September 22, 2016 05:28 ET (09:28 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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