Zijin News On the evening of December 2, Zijin Mining issued an announcement that the company plans to acquire all shares of Continental Gold for approximately 7 billion Yuan in cash agreement, thereby obtaining 100% equity in Colombia's Buriticá Gold Mine.
Data show that Continental Gold is a leading large-scale gold mining company in Colombia, with headquarter in Canada, and Buriticá Gold Mine is its core asset. The mine has approximately 353 tons of gold resources, with an average grade of 9.3 grams / ton, and the construction of its beneficiation plant has been completed by 88%. It is expected to be completed and put into operation in the first quarter of 2020. According to the design, the average annual output of gold is 8.8 tons and the output of silver is 15.4 tons. It will become the largest independent gold mine in Colombia.
The merger and acquisition of the Buriticá Gold Mine will undoubtedly complement the “regret” of Zijin Mining ’s lack of large-scale gold mine overseas, making Zijin ’s “gold color” even more sufficient. After the completion of this acquisition, Zijin Mining's equity-controlled gold resource reserves will exceed 2,000 tons, increasing the mine's gold production by approximately 20% (after reaching production).
Zijin Mining stated that the project is in line with the company's development strategy, which will greatly increase the company's gold sector business proportion and profitability, and enhance the company's position in the gold industry. The project can be completed and put into operation in 2020. After reaching the production capacity, it will generate strong profits and cash flow, which is highly complementary to the company's current global asset allocation and can improve the company's financial indicators.