SolGold (LSE:SOLG) has reported encouraging infill and step-out drilling results from the Tandayama-América deposit at its Cascabel Project in Ecuador, confirming continuity of copper-gold mineralisation and identifying higher-grade zones at depth and beyond existing pit limits. Despite the positive exploration results, the company cautioned that several critical workstreams, including metallurgical and geotechnical studies, are still outstanding, meaning a full assessment of project economics has yet to be completed.
Alongside the operational update, the board flagged a potential funding requirement. With cash of US$34.1m at the end of September 2025 and continued development expenditure, SolGold said additional equity financing would be required by the second quarter of 2026 if the proposed takeover by Jiangxi Copper’s JCHK vehicle does not proceed. No competing bids have emerged, and major shareholders including BHP, Newcrest, Maxit, DGR Global and company directors have indicated support for the court-approved scheme.
As a result, the board is unanimously recommending that shareholders vote in favour of the Jiangxi Copper cash offer at meetings scheduled for 23 February 2026. Investor focus is therefore split between the evolving exploration story at Cascabel and the outcome of the takeover process, which would remove near-term funding uncertainty.
From a market perspective, SolGold’s outlook continues to be constrained by its loss-making, pre-revenue profile, equity dilution risk and meaningful leverage. These factors are partly offset by a constructive share price trend and positive corporate catalysts, including the revised takeover proposal and ongoing project progress. Valuation remains difficult to support on an earnings basis in the absence of revenue or dividend visibility.
More about SolGold
SolGold plc is a mineral exploration and development company focused on large-scale copper and gold systems, primarily in Ecuador. Its flagship Cascabel Project in northern Ecuador hosts multiple advanced targets, including the Tandayama-América deposit, with the ambition of developing long-life, tier-one copper-gold assets attractive to major mining groups and strategic investors.
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