June 30, 2020 / 1:16 PM / 5 days ago

BHP-backed SolGold makes second attempt on Canada's Cornerstone

June 30 (Reuters) - BHP-backed SolGold Plc, the copper-gold company focused on Ecuador, is making a second attempt to take over Canada’s Cornerstone Capital Resources , more than a year after its previous approach was rebuffed.

The all-stock transaction of 11 ordinary shares of SolGold for each Cornerstone share represents a premium of around 22% to the company’s closing price on Monday, SolGold said in a statement.

At a market capitalisation of C$103.1 million ($75.35 million), Cornerstone has an 8% share in SolGold, making it its fourth biggest shareholder, and 15% in SolGold’s project Cascabel, Refinitiv data shows.

It also has other gold, silver and copper projects in Ecuador and Chile.

SolGold, in May announced it had agreed a financing package of up to $150 million with streaming company Franco-Nevada Corp to develop its Alpala project.

It made a previous approach in February 2019 to Cornerstone, representing a premium of around 20%, which the company rejected, saying it undervalued it.

Cornerstone was not immediately available to comment on the latest offer.

BHP,, the world’s biggest miner, owns 15.31% of SolGold, while Australian gold miner Newcrest Mining Ltd owns 15.23%, Refinitiv data shows.

$1 = 1.3683 Canadian dollars Reporting by Clara Denina; editing by Barbara Lewis

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