Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
Sale ends in
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week for 24 weeks
save over $140
// //

Cornerstone Capital Resources Inc said on Wednesday it intends to urge SolGold Plc shareholders to replace the company’s entire board, a day after rejecting the London-listed miner’s takeover offer for the second time.

Cornerstone has an 8 per cent stake in SolGold, making it the BHP Group,-backed company’s fourth-biggest shareholder.

“The current SolGold Board is incapable of managing the affairs of SolGold for the benefit of all shareholders in a prudent and transparent manner,” said Greg Chamandy, chairman of Cornerstone, in a statement.

Story continues below advertisement

The proposed Franco-Nevada royalty financing will significantly destroy shareholder value for all SolGold shareholders, Chamandy added.

SolGold in May had announced a financing package of up to $150 million with streaming company Franco-Nevada Corp to develop its Alpala project, a copper-gold deposit in northern Ecuador.

The Canadian copper and gold miner said it expects the SolGold’s new board to carefully review the terms of the Franco-Nevada financing package and take appropriate action to terminate the deal if it is not in the best interests of SolGold and its shareholders.

SolGold made an all-stock transaction offer of 11 SolGold ordinary shares for each Cornerstone share late in June after its earlier proposal in 2019 was rejected on grounds that it undervalued the Canadian company.

Cornerstone said on Tuesday about 65 per cent of its shareholders would not support SolGold’s second offer.

SolGold did not immediately respond to Reuters request for comment. Shares of the London-listed jumped 5 per cent to 22.20 pence by 1139 GMT.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies