SolGold makes another attempt at acquiring all of Alpala project
SolGold (TSX:CGP) is trying again to acquire all the common shares of Cornerstone Capital Resources.
SolGold's Alpala project is currently wholly owned by Exploraciones Novomining S.A., an Ecuadorean company co-owned by SolGold and Cornerstone with legal and beneficial ownership interests of 85% and 15% respectively.
SolGold said the all-stock transaction of 11 ordinary shares of SolGold for each Cornerstone represents a premium of approximately 22% over Cornerstone's closing price on the TSX Venture Exchange on 29 June 2020 and a premium of 56% based on the volume weighted average trading price over the last 12 months.
"It has been the view of the Board of Directors and management of SolGold for some time, that the consolidation of 100% ownership of the Alpala Project into a single listed entity makes eminent sense and would simplify the structure of the project, whilst also removing the risk of dilution and future development funding finance for Cornerstone shareholders," writes SolGold in a news release.
SolGold describes Alpala as one of the top undeveloped copper gold projects globally. Last month SolGold raised $32.6 million to advance the project. BHP Billiton and Newcrest both have 13% of the SolGold.
In February 2019 SolGold was re-buffed when it made a similar offer.