(Yicai) March 13 -- Jiangxi Copper is increasing its holdings in SolGold to become the largest shareholder, which will allow the Chinese copper giant to have a greater say in the development of the Australian mineral exploration company’s key asset, the Cascabel copper mine in Ecuador, which is one of the largest undeveloped copper-gold deposits in the world.

Jiangxi Copper will pay USD18 million to SolGold Canada, for an additional 5.2 percent equity, or 157,141,000 shares, in SolGold , the Nanchang-based company said yesterday, citing the asset purchase agreement penned by the two parties.

The new purchase will bolster Jiangxi Copper’s holdings to 12.19 percent, making it the biggest single shareholder in Perth-based SolGold, which is listed both in London and Toronto.

SolGold is not operating at the moment and has no revenue. The company racked up a net loss of USD60.3 million for the fiscal year ended June 30, 2024, and a net loss of USD17.4 million in the six months ended Dec. 31, 2024.

However, it owns the Cascabel copper mine in northwest Ecuador, along with several other mineral resource projects in various stages of exploration.

The Cascabel mine has proven, controlled and inferred resources of 12.2 million tons of copper, 30.5 million ounces of gold and 102.3 million ounces of silver from its main deposits, according to a recent pre-feasibility study. This includes proven reserves of 3.2 million tons of copper, 9.4 million ounces of gold and 28 million ounces of silver.

The acquisition will help enrich Jiangxi Copper’s resource reserves and enhance its position in the industry, it said. Following the deal, Jiangxi Copper will provide consulting services for the further development of the Cascabel project, it added.

Jiangxi Copper’s Hong Kong stock [HKG: 0358] finished the day up 0.3 percent today at HKD13.46 (USD1.73) and in Shanghai [SHA: 600362] its shares ended up 0.3 percent at CNY22 (USD3).

Editor: Kim Taylor