Last checked at 
LONDON, June 2 (Reuters) - BHP-backed SolGold Plc,
the copper-gold company focused on Ecuador, said on Wednesday it
will work with shareholder Cornerstone Capital Resources to
advance the Cascabel project, ending a two-year spat that will
allow them to explore financing options.
The Cascabel-Alpala asset in Ecuador is a copper-gold
project expected to start production in 2025. It has measured
and indicated resources of 10 million tonnes of copper and more
than 20 million ounces of gold.
"The parties will explore and evaluate a range of strategic
and financing options focused on maximizing value for their
respective shareholders with respect to the Cascabel Project,"
it said in a release.
Cornerstone has a 6.9% stake in SolGold, making it the $1.1
billion company's fourth-biggest shareholder after BHP
, Australia's Newcrest and DGR Global Ltd.
Canada's Cornerstone, which has also a 15% in the Cascabel
concession's holding company ENSA, had twice rejected a takeover
offer from London-listed Solgold, in turn urging SolGold's
shareholders to replace the board.
SolGold was also at the centre of a public dispute with BHP
and Newcrest last year, which raised concerns that its funding
methods for the project were inefficient and expensive, after it
secured a financing package of up to $150 million and a $15
million bridge loan with mining financiers Franco-Nevada Corp
.
It has since sought to mend fences with its major
shareholders. Its founder and chief executive Nick Mather
retired in March after 13 years at the helm.
"Everybody with an interest in Cascabel is now demostrating
a united front, which is ultimately good for the project,"
interim CEO Keith Marshall told Reuters.
Both BHP and Newcrest participated in Solgold's latest $73.8
million fundraising in April.
Copper is in high demand for use in renewable energy
and electric vehicles and new deposits are rare and increasingly
difficult to recover. Gold serves as an hedge against inflation,
stoked by policy support measures in advanced economies in
response to the COVID-19 pandemic.
(Reporting by Clara Denina
Editing by Marguerita Choy)
