Zijin Mining agrees to acquire Guyana Goldfields for $238m

Chinese mining company Zijin Mining Group has signed a binding arrangement agreement to acquire Guyana Goldfields for a consideration of C$323m (around $238m) in cash.

Free Whitepaper

img

Mining Mega Trends and Their Impact to your Organisation’s Resilience

Numerous mega trends are impacting the mining industry, making an effective resilience program more important than ever to ensure that operations continue as intended.

From ESG considerations, through to the use of advanced technologies such as Internet of Things devices, AI, and digital twins, as well as workplace safety, volatility in commodity markets, and the spectre of Covid-19 still looming. Each mega trend has a different impact that needs managing correctly, with a one-size-fits-all approach insufficient.

This white paper identifies the mega trends affecting mining businesses, while exploring the opportunities, risks, and implications for operational resilience, with expert insight from Dynamiq on the best practices and approaches to improve business outcomes.

Download this document to learn more.

 

by Dynamiq

Enter your details here to receive your free Whitepaper.

Thank you.Please check your email to download the Whitepaper.


The Chinese miner has offered Guyana C$1.85 ($1.36m) in cash for each common share, which is 35% higher than a previous proposal from Canada’s Silvercorp Metals.

Before signing the agreement with Zijin Mining, Guyana noted that it had officially cancelled its previous arrangement with Silvercorp.

Guyana Goldfields president and CEO Alan Pangbourne said: “The all-cash offer from Zijin represents a significant premium to the amended Silvercorp offer price and is an excellent outcome for Guyana Goldfield’s shareholders.

“Zijin is a highly regarded mining company with an impressive track record of successful international acquisitions and operations. We look forward to working with Zijin over the coming weeks to close this transaction and transition to the new team.”

Besides the cash consideration, Zijin Mining has committed to provide $30m towards the ongoing operations of Aurora gold mine and other liquidity needs.

Aurora gold mine is the flagship asset of Guyana Goldfields. It is located in Guyana, South America.

Zijin chairman Chen Jinghe said: Guyana Goldfields’ management team has dedicated tremendous effort and made significant contributions in progressing the Aurora Gold Mine and we look forward to advancing and developing the next phase of the mine.

“We believe that the Aurora mine is a high-quality gold asset with significant upside potential which we believe will be highly complementary to Zijin’s existing mining asset portfolio.”

Last week, Zijin Mining announced its plans to acquire a 50.1% equity interest in Tibet Julong Copper, a company with rights to two copper deposits in Tibet, for CNY3.88bn ($548m).

In February this year, Zijin Mining received approval from the Canadian Investment Canada Act to acquire 100% equity interest in mining firm Continental Gold for C$1.33bn ($996m). In December last year, Zijin Mining signed a definitive agreement to acquire Continental Gold.

Related Companies



Free Whitepaper

img

Mining Mega Trends and Their Impact to your Organisation’s Resilience

Numerous mega trends are impacting the mining industry, making an effective resilience program more important than ever to ensure that operations continue as intended.

From ESG considerations, through to the use of advanced technologies such as Internet of Things devices, AI, and digital twins, as well as workplace safety, volatility in commodity markets, and the spectre of Covid-19 still looming. Each mega trend has a different impact that needs managing correctly, with a one-size-fits-all approach insufficient.

This white paper identifies the mega trends affecting mining businesses, while exploring the opportunities, risks, and implications for operational resilience, with expert insight from Dynamiq on the best practices and approaches to improve business outcomes.

Download this document to learn more.

 

by Dynamiq

Enter your details here to receive your free Whitepaper.

Thank you.Please check your email to download the Whitepaper.




Source link

Leave a Reply

Your email address will not be published.