(Alliance News) - SolGold PLC on Tuesday said it is looking to maximise shareholder value through a USD50 million investment, a merger, and a "top priority" strategic review.

SolGold PLC is a Brisbane, Australia-based developer of copper-gold deposits in Ecuador.

Earlier this month, Solgold appointed Non-Executive Director Scott Caldwell as interim chief executive officer, after managing director & CEO Darryl Cuzzubbo left the company.

Solgold on Tuesday issued an update on the company's strategy and near-term priorities following the appointment of Caldwell.

The company noted that a USD50 million royalty investment from Osisko Gold Royalties Lt will add "a fresh strategic endorsement of SolGold".

It added that the investment is expected to close imminently.

Solgold said it also expects its acquisition of Toronto-listed Cornerstone Capital Resources Inc will close following regulatory approvals and a special meeting of Cornerstone shareholders to approve the deal.

Under the pact, each Cornerstone share will be exchanged for 15 SolGold shares. If SolGold does not pay any part of the deal in cash, its shareholders will hold 80% of the new enlarged firm.

SolGold said its board remains focused on advancing its strategic review as a "top priority". The review will primarily evaluate financing alternatives, a spin-out of assets, and a possible direct or indirect sale of the Cascabel project.

Cascabel is a copper-gold project in northern Ecuador.

SolGold' project team is currently reviewing "all opportunities to de-risk the project, reduce costs and further improve project economics."

Caldwell said: "Our top priority is to allocate our human and capital resources efficiently to unlock shareholder value. We are curtailing spend that is not aligned with our value maximisation objectives including advancing non-essential studies in this market environment that do not materially increase value."

Shares in SolGold were down 3.7% to 17.22 pence each in London on Tuesday morning.

By Sophie Rose; sophierose@alliancenews.com

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