CGI to acquire Tibet focussed Skyland Mining for $742.3 million
04 Sep 2010
China Gold International Resources Corp (CGI), formerly known as Jinshan Gold Mines said that it will acquire Skyland Mining Ltd, which owns the Jiama copper mine in Chinese controlled Tibet in an all-stock deal valued at $742.3 million.
Skyland principal asset is the Jiama polymetallic metal-mining property located in Metrorkongka County in Tibet that is being developed into a combined open-pit and underground mining operation.
Vancouver-based China Gold International will issue 170.3 million common shares to buy Skyland at C$4.36 a share from Rapid Result Investments and China National Gold Group Hong Kong, a subsidiary of China National Gold Group Corporation.
State-controlled China National Gold Group, which is the country's largest gold producer with an annual output of 89 tonnes, refines gold, silver, and copper, produces custom-designed gold and silver bars as well as gold powder and grains, and raw copper.
It also brings out gold industry news publications and is the official news outlet for the Shanghai Gold Exchange and Shanghai Diamond Exchange.
''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,'' said Zhaoxue Sun, chairman of China International.
Tibet's ire at China's resource exploitation
All mining exploitation by China in Tibet is fiercely opposed by Tibetans who say that Tibet's gold and other resources rightfully belong to them and believe it is irresponsible to extract non renewable resources while Tibetans are unable to exercise their internationally recognised human rights, including deciding how their resources should be used.