Jinchuan acquires Continental Minerals for $419 million

China's largest producer of nickel and cobalt, Jinchuan Group Ltd Friday agreed to acquire China-focused Canadian miner Continental Minerals Corporation (Continental), an associate company of the Hunter Dickinson Group of mining companies, for approximately C$432 million ($419 million).

The move is the latest in a series of relentless Chinese acquisitions of the world's natural resources in recent years to meet the growing needs of the country's fast-growing economy.

Jinchuan already owns a 14-per cent interest in the Canadian miner, and through the proposed transaction intends to buy 100-per cent of the company by acquiring approximately 166 million shares on a diluted basis for C$2.60 per share.

The offer price represents a 13-per cent premium to the closing trading price of Continental in Toronto on 14 September 2010, the last trading day prior to the announcement, and 18-per cent over the average price for the shares during the past one month.

As part of the deal, Continental will also pay up to C$0.10 per outstanding Continental share prior to completion of the acquisition.

Vancouver-based Continental is a resource company. Since 2005, it has been focussing on the exploration of a prolific copper-gold property, Xietongmen in Tibet autonomous region in China.