SolGold goes after smaller rival Cornerstone Capital Resources

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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 all-stock offer would see SolGold paying C$3.90 for each Cornerstone Capital Resources share, a 22% premium to its closing price on Monday.

Chief executive Nick Mather said the consolidation of Alpala into a single listed entity made “eminent sense” as it would simplify the structure of the $2.8bn project. He also said it would reduce the risk of dilution and future development costs for Cornerstone shareholders.

More to come…