Ecuador-focused SolGold has appointed Ingo Hofmaier to the position of executive general manager for project and corporate finance, starting on September 9.
Hofmaier joins SolGold from London-based investment banking firm Hannam & Partners, where he worked on the acquisition of Stillwater by South Africa-headquartered Sibanye Gold and of Ivanhoe Mines by diversified major Rio Tinto.
Analysts at London-based SP Angel said on Monday that Hofmaier’s appointment highlighted the significance of SolGold’s Cascabel project and its potential for acquisition.
A note to clients said that the recent publication of a preliminary economic assessment on the Cascabel project brought the company closer to having to fend off a bid.
Major miners BHP and Rio Tinto were earning substantial cash from the sale of iron-ore at over $100/t in recent months and could afford to acquire projects, such as Cascabel.
BHP and Newcrest have made significant cash injections in SolGold and Newcrest, like Rio Tinto, were experts in large-scale cave mining.
“Given that it can take five to ten years to plan and build a major copper mine of this sort of scale the majors know they need to plan now to stay ahead in the next generation of copper mines,” said SP Angel.
Meanwhile, SolGold CEO Nick Mather said that Hofmaier’s appointment underscored the company's commitment to the progression of the Cascabel project through prefeasibility and definitive feasibility by the end of 2020.
“Ingo will be focusing on the establishment of a development financing solution for SolGold's share of development costs incurred by ENSA on the Cascabel project. His comprehensive understanding of SolGold and the project, his experience in debt and equity capital markets and financings of this nature, and his deep understanding of the global commodity markets, particularly copper and gold, auger well for delivery of the financing package,” he noted.
SolGold is manager of the Cascabel project held by Ecuador company ENSA, in which the firm owns 85%.