China Gold buys Tibet mine

 

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China Gold International Resources Corp Ltd said Monday it has signed a deal to buy a copper mining property in Tibet in an all-stock deal valued at $742.3 million (US).
China Gold said it will issue 170.3 million common shares at a deemed price of $4.36 (Canadian) a share for 100 per cent of Skyland Mining Ltd, whose chief asset is the Jiama copper property in Metrorkongka County, Tibet.
The Jiama Property hosts a large copper-polymetallic deposit that is being developed into a combined open-pit and underground mining operation.
The purchase includes assumption of shareholder loans of $42.3 (US) made by the vendors, Rapid Result Investments Ltd. and China National Gold Hong Kong Ltd, a wholly owned subsidiary of China National Gold Group Corp, the company’s largest shareholder.
China National Gold Group, the largest gold producer in China with an annual output of 89 tonnes, is 100 per cent owned by the State Investment Commission of the State Council of China.
“The acquisition of Skyland represents the first significant step in China National Gold’s goal of establishing China Gold International Resources Corp Ltd as its international flagship company,” China International’s chairman, Zhaoxue Sun, said in a news release.
The company said completion of the transaction was subject to a number of conditions, including approval from disinterested shareholders, the completion of China Gold International’s listing on the Hong Kong stock exchange and regulatory approvals.
A special meeting of shareholders to approve the transaction is expected to be held in October, with closing expected in November.