Zijin Mining spends $408 mn in acquiring gold projects in China
08 Nov 2011
Zijin Mining Group, China's biggest gold producer by market value, today said that it would acquire a 45-per cent stake in Gold Eagle Mining Investment, for 1.44 billion yuan ($226.7 million).
According to a separate statement filed to the Hong Kong stock exchange, Zijin Mining said it is is also acquiring the Lixian gold project in China from Australian miners Warrior Advance Pty Ltd. and Dragon Mountain Gold Ltd, for A$175 million ($181 million).
Gold Eagle owns Tibet Tianyuan Mineral Resources Development, which owns a copper-gold mine in Xietongmen, Tibet.
Tianyuan owns two prospecting rights to the Xietongmen mine, one covering an area of 12.89kms and has proven mineral reserves of 200 million tons, including 122.5 tons of gold and 953,000 tons of copper, while the other covers an area of 109.43kms, which holds copper deposits.
The Lixian Gold Project covers an area of 36.39km and has infrastructure like water supply, power and road connectivity. The site is estimated to hold around 1.5 million ounce of gold resource.
In view of low valuations of mineral companies due to the bleak global economic scenario, Zijin Mining has said that it will spend around $1.6 billion for acquiring gold, copper and other metals miners.
Shanghai and Hong Kong listed Zijin Mining has a market capitalisation of more than $12 billion and has interests in several minerals including gold, copper, zinc, lead, tungsten and iron ore.