Canadian Business reported that China Gold International Resources Corporation Limited has signed a deal to buy a copper mining property in Tibet in an all stock deal valued at USD 742.3 million.
China Gold said that it will issue 170.3 million common shares at a deemed price of CAD 4.36 per share for 100% of Skyland Mining Limited whose chief asset is the Jiama copper property in Metrorkongka County of 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 USD 42.3 made by the vendors, Rapid Result Investments Limited and China National Gold Hong Kong Limited, a wholly owned subsidiary of China National Gold Group Corporation.
China National Gold Group, the largest gold producer in China with an annual output of 89 tonnes is 100% owned by the State Investment Commission of the State Council of China.
Mr Zhaoxue Sun chairman of China International said that "The acquisition of Skyland represents the first significant step in China National Gold's goal of establishing China Gold International Resources Corporation Limited as its international flagship company."
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The company said that 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.(Edited by EnergyChinaForum.com. For more information, please email to: info@energychinaforum.com)
(Canadianbusiness,Sep 1,2010)
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