Australia鈥檚 largest gold producer, Newcrest Mining (ASX: NCM) (LON, TSX:SOLG), which is developing the Cascabel copper-gold project in the country鈥檚 north.
The deal further bolsters Newcrest鈥檚 position in SolGold against No.2 shareholder, BHP, as it raises its stake in the junior miner to 15.33% from 13.83%.
In September, for $35 million. It nearly doubled its stake the following month to 11.1%, triggering speculation of a potential takeover battle with Newcrest.
SolGold鈥檚 Cascabel copper-gold project, in Ecuador鈥檚 north, is one of the very few new ones expected to come online in the near future.
Miners are聽scrambling聽for copper projects amid forecasts that demand of the metal will significantly outstrip supply from 2020, due to increasing demand for power generation and electric vehicles (there are 300kg of copper in an electric bus and nine tonnes per windfarm megawatt).
The Cascabel project is one of the few new ones expected to come online in the near future. According to Colin Hamilton, director of commodities research at BMO Capital Markets, the current copper pipeline is聽, both in terms of numbers and capacity.
鈥淎fter delivery of Cobre Panama (with the main ramp early next year) we are left with a gap until we see the next batch of 200ktpa-plus projects in 2022-23. This is when the likes of Kamoa, Oyu Tolgoi Phase 2, and QB2 are likely to offer meaningful supply growth,鈥� Hamilton said in April.
鈥淗ighly prospective鈥� location
Ecuador has gained ground as a mining investment destination in the past two years, thanks to a revised regulatory framework and a聽聽that has already attracted around 420 applications for concessions in less than a year.
BHP CEO Andrew Mackenzie himself said the investment allowed the world鈥檚 No. 1 mining company to tap into a 鈥渉ighly prospective鈥� mining destination, partly聽given its relatively untapped reserves.
In March, mining giant Anglo American (LON:AAL),聽landed in the South American country. Through a deal with Canadian junior Lumina Gold (TSX-V:LUM) (OTC:LUMAF), the company plans to develop two copper and gold concessions there.
Currently, the nation鈥檚 emerging mining sector employs 3,700 people, but聽聽the figure will rise to about 16,000 by 2021.