Gold miner SolGold says global miner BHP Billiton's offer to buy a stake in the company to gain exposure to its Cascabel project in Equador is not in its best interest.
BHP Billiton on Saturday offered $US30 million ($A40 million) for a 10 per cent stake in SolGold. The offer also includes an additional $US275 million proposal, linked with acquiring a 70 per cent stake in the unit managing the Cascabel project, SolGold said.
SolGold, which owns a 80 per cent stake in the Equador project, said the BHP offer was not in its best interest, as it preferred a $US33 million ($A43 million) financing proposal from investment fund Maxit Capital and gold mine operator Newcrest International.
"The current... financing with Maxit and Newcrest is the preferred option at this time as it leaves us in control of this very exciting project at Cascabel....There is considerable upside in the additional 13 targets as well as the existing and growing Alpala deposit," SoldGold said.
