The Canada-based partner of Ecuador-focused SolGold has again snubbed a takeover offer, with TSX-V-listed Cornerstone Capital Resources arguing that it is “wholly inadequate”, “exploitative” and not compliant with securities laws.
Australia-headquartered SolGold, which is backed by BHP and Newcrest Mining, on June 30 formalised an unsolicited offer for Cornerstone – a year-and-a-half after it first announced its intention to buy the company.
“For the second time, the board is unanimous that SolGold’s proposal substantially undervalues Cornerstone, a fact that has clearly been recognised by our shareholders, as holders of approximately 65% of the outstanding Cornerstone shares have advised Cornerstone that they will not support SolGold’s hostile bid,” said chairperson Greg Chamandy, who owns more than 10% of Cornerstone’s shares.