BHP buys stake in SolGold, setting up potential showdown with Newcrest
Melbourne — Global miner BHP has agreed a £27m deal for a 6.1% stake in SolGold, giving it a share in the promising Cascabel copper-gold project in Ecuador after missing out in an earlier attempt. BHP CEO Andrew Mackenzie said the investment would give the miner exposure to a high-quality copper exploration project in Ecuador, a "highly prospective" location for the company. BHP has spent several years paying down debt and, like many other miners, is on the hunt to grow its asset base by finding and developing copper projects. Copper is seen as a growth market due to its use in renewable energy, but major projects are notoriously thin on the ground. The deal sets the stage for a potential showdown with Australian gold miner Newcrest Mining, the top shareholder in SolGold, Cascabel’s majority owner and operator, with a 14.54% stake.
"It’s a pretty attractive asset. It’s early stage but the geology looks prospective," said a Melbourne-based analyst for a fund manager, who declin...
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