SolGold said on Friday it was minded to recommend an improved takeover offer from its largest shareholder, China’s Jiangxi Copper, valuing the gold and copper miner at about £842 million, as competition intensifies globally for scarce copper assets. The move signals growing pressure on mid-sized miners as major producers race to secure future supply.
Jiangxi Copper’s revised proposal of 28 pence per share represents its third attempt to acquire SolGold and a 7.7% increase on the 26-pence-per-share bid that was rejected last month. The Ecuador-focused miner said its board would advise shareholders to accept the deal if Jiangxi Copper makes a firm offer on the improved terms.
The pursuit of SolGold comes as mining companies worldwide invest heavily in acquisitions to lock in copper resources, driven by expectations of rising demand from artificial intelligence infrastructure and electric vehicle manufacturing. Major players are competing aggressively, with Anglo American and Canada’s Teck Resources still awaiting regulatory approval for their proposed $53 billion merger aimed at creating the world’s fifth-largest copper producer.
Despite the higher offer, SolGold’s shares fell more than 10% to 25.1 pence, trading below the bid price as investors weighed the risks of large mining takeovers and potential regulatory hurdles. The reaction highlights lingering scepticism in equity markets about deal certainty and valuations in the sector.
Jiangxi Copper’s bid is subject to approval from Chinese authorities for outbound investment, a process that has already begun but has become increasingly complex as Beijing tightens scrutiny of overseas acquisitions. Success would give the state-backed miner control of SolGold’s flagship Cascabel project in Ecuador’s Imbabura Province, which hosts one of South America’s largest undeveloped copper-gold deposits.
Jiangxi Copper, which has operations spanning China, Hong Kong, Peru, Kazakhstan and Zambia, already owns a 12.2% stake in SolGold. Its takeover effort is supported by other major shareholders including BHP, Newmont and Maxit Capital, which together account for 40.7% of the company’s shares, strengthening the bidder’s position as the contest for strategic copper assets intensifies.
