SolGold ends quarter with "strong" cash balance, support for Cascabel

(Alliance News) - SolGold PLC on Friday said the third quarter reflected its "new direction and drive toward the delivery of a technically robust Cascabel [project]".

The Ecuador-focused exploration company said it ended the third quarter, which finished on March 31, with "a strong cash position" after it received an USD18.1 million capital injection from share sales.

The 157.1 million shares in SolGold were purchased by Chinese copper producer Jiangxi Copper Co Ltd at 11.5 US cents each from SolGold Canada Inc, increasing its stake in SolGold to above 12%.

SolGold also noted that during the quarter it received an advanced exploration permit for the Porvenir project. Also, in May it secured an environmental licence "clearing the path for drilling and additional technical work" at Porvenir.

Also in May, SolGold announced the signing of an amended investment protection agreement with the Government of Ecuador. It said the deal "[provided] long-term legal and fiscal stability for the Cascabel project", and acknowledged historical investments exceeding USD311 million.

SolGold furthermore noted the appointments in March of Chief Executive Officer Dan Vujcic, Non-Executive Chair Paul Smith, and Senior Independent Director Charles Joseland.

"This quarter reflects management's new direction and drive toward the delivery of a technically robust Cascabel," Vujcic commented. "The AIPA marks a key de-risking milestone and sets up the company well for executing the CIPA in the coming quarter. Jiangxi Copper's continued investment signals confidence in the project's value, something we are hoping our broader shareholder base will follow suit in recognising.

"The new team are focused on executing the new strategy, which we anticipate releasing in the coming weeks. The team is here to advance Cascabel as soon as possible, for the people of Ecuador and for shareholders."

SolGold shares were up 0.3% at 7.07 pence in London late on Friday morning.

By Emma Curzon, Alliance News reporter

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