By Anthony O. Goriainoff

 

Shares in SolGold PLC (SOLG.LN) rose Monday after the company said BHP Group PLC (BHP.LN) has agreed to buy an extra 4% in the company worth $22 million, making it SolGold's largest shareholder.

The Ecuador-focused mining company said BHP will buy 77 million shares at 22.15 pence each, a 13% premium to Friday's closing price of 19.58 pence a share. The company said BHP will then own 282.7 million shares, or 14.7% of its issued share capital.

The company said BHP has agreed not to acquire further shares in, or make an offer for, SolGold for a period of two years. However it said BHP has a right to acquire up to 246.6 million SolGold shares--not counting shares acquired by way of certain permitted acquisitions--and it also has a right to make an offer for SolGold provided it has first been approved by the company's shareholders.

"SolGold is pleased to welcome BHP into a further position in the company. SolGold's view is that the agreement endorses its view of SolGold's commanding Ecuadorean copper and gold exploration footprint, and in particular the robust Alpala deposit," Chief Executive Nicholas Mather said.

Shares at 0955 GMT were up 12% at 22 pence.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

November 25, 2019 05:24 ET (10:24 GMT)

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