BHP Billiton Seeks Copper Growth With SolGold Stake

   By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said it will acquire a 6.1% interest in copper explorer SolGold PLC (SOLG.LN) as the world's largest mining company seeks to boost its exposure to a metal used in everything from smartphones and electric vehicles to air conditioners.

BHP said it inked an agreement with Guyana Goldfields Inc. to buy its roughly 103 million shares in SolGold, which runs the Cascabel copper and gold project in Ecuador, for about 27 million pounds (US$35 million).

SolGold in 2016 rejected an offer from BHP to invest in the company and develop its flagship Cascabel project, instead picking a competing investment by Australia-based Newcrest Mining Ltd. (NCM.AU) and Maxit Capital LP.

"Consistent with our positive long-term outlook, copper is a key exploration focus for BHP as we seek to replenish our resource base and grow this important business," BHP Chief Executive Andrew Mackenzie said on Wednesday.

BHP said it will pay 26.592 pence per SolGold share, a 20% premium to the 20-day volume-weighted average on London's stock exchange.

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

September 04, 2018 20:04 ET (00:04 GMT)

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