SolGold jumps after Ecuador's constitional court strikes down proposed referendum on mining

Shares of gold and copper miner SolGold jumped at the end of the week after Ecuador's constitutional court rejected a proposal for a referendum on mining in various provinces in the South American country in which the outfit operates, even if on technicalities.

"The Court did not discuss, or rule on, the merits of the case. The formal resolution of the Court with further detail in to its rejection of the petition is yet to be published," the company said.

"With this decision the [proposal] has been closed and the case closed."

"The history of the industry however suggests that, in our increasingly globalised environment, even relatively small groups of campaigners, sometimes from beyond the regions directly affected, can be tenacious in fomenting opposition to minerals development," commented analysts at SP Angel.

"Solgold will, no doubt, study the Court’s decision closely and prepare to address any future moves to reinvigorate the referendum proposal."

Nonetheless, in a statement, the company pointed out how the Ecuadorean government itself had on 12 June highlighted the potential of SolGold's 85%-owned Cascabel mine to become one of the largest on the planet, adding that "SolGold continues to receive full and objective support from the Ecuadorean government."

"The Cascabel project is a key project in Ecuador's developing mining industry and a critical driver for the future of Ecuador's economy in the view of the government."

As of 1133 BST, shares of SolGold were 18.71% higher to 33.95p.