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Solgold said in a statement that the complementary IPA, signed at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, underscores the scale and importance of the project.
“[This deal] “This not only provides greater protection for important investments in Ecuador, but also represents a deepening of our relationship with the Ecuadorian state,” said CEO Scott Caldwell.
SolGold announced a new pre-feasibility study (PFS) for Cascabel in February, in which it successfully reduced upfront costs. Pre-production capital used for initial mine development, initial process plant modules and infrastructure is now $1.55 billion compared to $2.75 billion in his PFS issued in April 2022 It is estimated that.
According to Solgold, the overall size of the resource indicates the mine has the potential to be a multi-generational mining asset, potentially becoming one of the 20 largest copper-gold mines in South America. Construction of the mine is scheduled to begin in 2025.
Investors are skeptical about SolGold’s management’s ability to realize the project’s full potential. The company’s share price has halved over the past year, but the mining company has had to cut spending to stay afloat, prompting a strategic review of its assets.
SolGold shares were trading 23.07% higher at 8.13 pence in mid-afternoon on the London market. But since the beginning of the year, the stock price has fallen more than 18%. Miner’s current market capitalization is £243 million (approximately $310 million).
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