Copper/gold developer SolGold is evaluating a phased approach to the development of the Cascabel project, in Ecuador, with the aim of reducing upfront capital and shortening the development schedule.
SolGold also deferred the Cascabel definitive feasibility study and the Porvenir preliminary economic assessment, owing to the fluidity of the current capital cost landscape and the ongoing assessment of value-enhancing opportunities.
The company is prioritising capital allocation as part of a reorganisation plan, which also aims to reduce costs and headcount, to preserve financial resources while derisking Cascabel.
“SolGold plans to provide an update as the various value-adding options are evaluated and a clearer picture of the future direction of the studies and timeframes emerges,” it said in its management discussion and analysis accompanying its 2023 third-quarter report.
Regarding the ongoing strategic review, SolGold said that it was continuing to evaluate financing alternatives, including potentially spinning out non-Cascabel assets.
During the second quarter, SolGold completed a $500-million royalty financing with Osisko Gold Royalties in relation to the copper and gold project. The company also successfully raised $36-million by issuing 180 000 new ordinary shares to investors, including Jiangxi Copper.