A month on from its initial investment in SolGold (SOLG), mining giant BHP Billiton (BLT) has paid £45m for 100m shares in the Ecuador-focused copper-gold explorer, at a 30 per cent premium to the group’s 20-day volume weighted trading average.
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The deal, which brings BHP’s holding to 11.2 per cent, gives the commodities giant the right to appoint a director to the explorer’s board and grants BHP anti-dilution rights for two years to ensure it has at least 10 per cent of the business. In turn, BHP has promised not to increase its holding above 247m shares (equivalent to 13.6 per cent of the business), unless it makes a full offer.
