A strong surge in gold prices this year has boosted demand for safe-haven assets such as bullion.
The announcement was issued jointly by the boards of SolGold and Jiangxi Copper (Hong Kong) Investment Company, representing Jiangxi Copper Company (JCC).
SolGold's board indicated that it is inclined to endorse the enhanced terms to shareholders, provided Jiangxi Copper advances a formal bid on the same basis.
This marks the third indicative proposal from Jiangxi Copper aimed at acquiring full ownership of SolGold.
The current bid reflects a 7.7% increase over the prior indicative offer of 26 pence per share, which SolGold declined last month.
Elevated gold prices throughout the year, influenced by global economic conditions and demand for reliable investment assets, have encouraged merger activity within the mining industry.
BHP Billiton, a subsidiary of BHP Group, submitted a non-binding letter of intent to JCC, confirming support for the updated proposal regarding its holding of 310,965,736 SolGold shares. This stake corresponds to 10.3% of SolGold's voting rights.
Newmont provided a similar letter of intent to JCC, backing the revised terms for its 309,309,996 SolGold shares, also representing 10.3% of the company's voting rights.
Maxit Capital, together with affiliated entities, issued a letter of intent supporting the offer, covering 153,366,663 shares equivalent to 5.1% of voting rights.
SolGold Chief Executive Officer Nicholas Mather submitted a letter of intent to JCC, expressing support for the revised proposal across his direct and indirect holdings totaling 84,249,282 shares, or 2.8% of voting rights.
Jiangxi Copper Company has maintained a substantial position in SolGold since December 2022, owning 365,757,587 shares that account for about 12.2% of the issued share capital.
Combined support from the letters of intent provided by BHP, Newmont, Maxit Capital entities, and Nicholas Mather aligns shareholders controlling 40.7% of SolGold's issued capital behind the updated indicative offer.
