Why Did SolGold Reject Jiangxi Copper’s $26p Bid? Inside the Market Reaction

Acquisition Bid Rebuffed

On 28 November 2025, SolGold plc’s board unanimously rejected a preliminary, non-binding offer from Jiangxi Copper (Hong Kong) Investment Company Limited to acquire the company at 26 pence per share. This decisive refusal came despite the offer representing a premium to recent trading levels, signaling SolGold’s confidence in its intrinsic value and future prospects.

Following the announcement, SolGold’s shares rallied sharply, closing at 29.55 pence on the day of the rejection and rising further to 29.90 pence by 1 December. This market response reflects investor optimism about SolGold’s standalone potential and the strategic value of its flagship Cascabel copper-gold project in Ecuador.

DGR’s Significant Stake and Market Impact

DGR Global Limited, an ASX-listed company, is the fourth largest shareholder in SolGold, holding approximately 204 million shares or 6.8% of the company. This stake represents 95% of DGR’s marked-to-market asset base, making SolGold its most valuable holding. The recent share price appreciation in SolGold has consequently re-rated DGR’s market valuation, reflecting the close financial and strategic ties between the two entities.

Notably, DGR’s CEO, Nicholas Mather, also holds a personal interest in SolGold shares, further aligning management with shareholder value creation. Other major SolGold shareholders include Jiangxi Copper itself, BHP Billiton, and Newcrest International, underscoring the project’s appeal to global mining heavyweights.

Cascabel Project’s Robust Economics and Growth Potential

SolGold’s Cascabel project, located in Northern Ecuador on the prolific Andean Copper Belt, remains a cornerstone asset with tier-one potential. A pre-feasibility study completed in February 2024 demonstrated compelling economics, with an after-tax net present value of US$3.2 billion and an internal rate of return of 24%, based on conservative metal prices at the time.

Since then, copper and gold prices have strengthened significantly, with gold surpassing US$4,000 per ounce and copper trading near US$4.50 per pound, suggesting that the project’s value could be materially higher than previously modelled. Moreover, the recent discovery of potentially open-pittable resources at the nearby Tandayama deposit adds a new dimension to the development plan, potentially enhancing early cash flow and financing options.

Funding and Exploration Upside

SolGold has secured a substantial gold streaming finance facility worth US$750 million with Franco Nevada and Osisko Royalties, providing critical pre-construction and construction capital. This funding package, combined with ongoing exploration across 89 concessions in Ecuador, positions SolGold to advance Cascabel while pursuing additional world-class copper-gold discoveries.

DGR remains optimistic about the long-term outlook, highlighting the rarity and scale of the Cascabel asset and the strategic importance of copper amid global supply constraints. Chairman Peter Wright emphasized the project’s compelling economics and the growing recognition of its value in the current commodity environment.

Looking Ahead

While the rejection of Jiangxi Copper’s offer closes one chapter, it sets the stage for further developments in SolGold’s corporate and operational trajectory. Market participants will be watching closely for any renewed acquisition interest, updated feasibility studies reflecting current metal prices, and progress on integrating the Tandayama deposit into the Cascabel development plan.