Australian miner BHP, a trading entity of mining, metals and petroleum company BHP Billiton Limited and BHP Billiton plc, has nearly doubled its stake in gold and copper mining company SolGold Plc, vying for position with top shareholder peer Newcrest Mining as it eyes SolGold's promising Cascabel copper-gold project in Ecuador.
Under the deal, BHP will pay SolGold 45 million pounds ($58.8 million) for 100 million new shares in the company at a 28 percent premium to the stock's last close, taking its total spend on the developer to $85 million.
BHP, which bought into SolGold just six weeks ago, has increased its holding to 11.2 percent, nearing the 14.5 percent stake held by Newcrest. Under the latest deal, BHP has the right to appoint a director.
BHP said that this additional investment in SolGold strengthens its strategic position in the Cascabel copper exploration project. SolGold said in a statement that BHP's investment would help the company take an aggressive path to the development of this project.