Gold miner SolGold says BHP Billiton offer not in its best interest

(Reuters) - Gold miner SolGold Plc (SOLG.L) said on Monday that global miner BHP Billiton Plc's (BLT.L) (BHP.AX) offer to buy a stake in the company to gain exposure to its Cascabel project in Ecuador was not in its best interest.

BHP Billiton on Saturday offered $30 million (24.16 million pounds) for a 10 percent stake in SolGold. The offer also includes an additional $275 million proposal, linked with acquiring a 70 percent stake in the unit managing the Cascabel project, SolGold said.

SolGold, which owns a 80 percent stake in the Ecuador project, said the BHP offer was not in its best interest, as it preferred a $33 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.

(This version of the story corrects spelling of Ecuador in lead and the third paragraph)

(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Sunil Nair)