SolGold PLC Announces Appointment of Key Executive

BISHOPSGATE, LONDON / ACCESSWIRE / July 29, 2019 / The Directors of SolGold Plc (SolGold or the Company) are pleased to advise the appointment of Mr Ingo Hofmaier to the position of Executive General Manager, Project and Corporate Finance. Mr Hofmaier is expected to commence in the role effective 9 September 2019.

Commenting on the appointment, SolGold CEO Mr Nick Mather said:

"Ingo's appointment is very important for SolGold and underscores the Company's commitment to the progression of the Cascabel project through Prefeasibility and Definitive Feasibility by end 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 is an outstanding appointment, which we indicated to the market as part of the effort to build up the project delivery team, and has the full backing of the Board to do the job for SolGold."

Ingo Hofmaier joins SolGold from London based investment banking firm Hannam & Partners, where he was instrumental in building the mining investment banking practice over the last six years. He was corporate broker to a dozen UK listed mining stocks, and worked on the USD3bn financing of the Aluminium Bahrain 500kt aluminium smelter expansion, the recapitalisation of Kenmare Resources, the acquisition of Stillwater (by Sibanye) and Ivanhoe (by Rio Tinto), funded bulk and base metals mines into production and counted numerous global hedge funds and private equity investors among his clients over the years.

Prior to his role as Head of Metals and Mining at Hannam & Partners, Ingo was:

1. Rio Tinto - Business Development Executive (London);
2. Wienerberger AG - Corporate Finance (Vienna) & Commercial Director (Bangalore);
3. Capgemini Consulting - Strategy consultant in natural resources (Vienna).

SolGold is manager of the world-class Cascabel project held by ENSA currently 85% owned by SolGold. The project is located in northern Ecuador has a recently published PEA which highlighted a base case NPV at a discount rate of 8% of USD4.3bn, assuming a 55 year mine life at an underground block cave mining rate of 50mtpa, using a projected copper price of 3.30 /lb copper, and a gold price of USD 1300/ oz and a silver price of USD 16.0/oz. The base case indicated a preproduction capital cost of USD2.7bn and an initial capital payback period of 3.6 years with an internal rate of return (post tax) of c25.9%. The project is being designed as a long life mine providing quick payback from the copper and gold rich core and long run profitability.

SolGold is continuing to push towards Pre-Feasibility by end 2019 and Definitive Feasibility-Study by the end of 2020.

SolGold is currently focussed on the collection of additional metallurgical and geotechnical data and the delivery of a third mineral resource estimate which will aim to deliver conversion of the bulk of the current inferred resource into indicated status as the central basis for the PFS. Fifteen (15) drill rigs are expected to be deployed on Cascabel by September in support of this effort.

SolGold endorses a high Ecuadorean stakeholder basis and employs Ecuadoreans across 97% of its 450 strong staff base, including 86 geologists 44 of which are at Cascabel and 30% female. The Company is strongly committed to best practice community and social engagement, safety and environmental care.

In regard to his appointment, Mr Hofmaier remarked:

"SolGold has developed a blueprint for the rapid and efficient discovery and appraisal of Ecuadorean copper gold porphyry projects. This position reflects the natural transition of the Company to become a major gold and copper miner. The outstanding high-grade core and configuration and scale of the orebody, Ecuador's commitment to the extractive industry, and outstanding logistic advantages make Cascabel the ideal starter operation for SolGold. I look forward to being at the centre of driving the finance function, and funding Cascabel into production via an independent, flexible and multi-source funding solution. Likely low cost of capital for years to come together with an excellent copper and gold market outlook will provide a welcome tailwind in SolGold's efforts to realise value from this outstanding ore-body. Personally I am excited to be working with a globally recognised exploration and truly driven management team."

SolGold is intent on the application of its strategy to its 12 other wholly owned and highly prospective targets throughout Ecuador. The Company is focussed on the creation of a copper gold major production company in Ecuador, substantially covering one of the world's most under explored and prolifically mineralised porphyry copper gold provinces in the norther Andean Copper Belt.

By order of the Board
Karl Schlobohm
Company Secretary

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

This news release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

CONTACTS

Follow us on twitter @SolGold_plc

ABOUT SOLGOLD

SolGold is a leading exploration company focussed on the discovery and definition of world-class copper and gold deposits. In 2018 SolGold's management team was recognised by the "Mines and Money" Forum as an example of excellence in the industry, and continues to strive to deliver objectives efficiently and in the interests of shareholders. SolGold is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective and gold-rich section of the Andean Copper Belt.