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Zijin Mining to buy Guyana Goldfields for $238 mln

Zijin News  On 12 June 2020, Zijin Mining issued an announcement that the company entered into an arrangement agreement with Guyana Goldfields Inc. The Company, through a wholly-owned subsidiary established in Canada by Gold Mountains (H.K.) International Mining Company Limited, the Company’ soverseas wholly-owned subsidiary, proposed to acquire all the issued and outstanding common shares of Guyana Goldfields  for cash consideration of CAD$1.85per Target Share. The total consideration for 100% Target Shares under the Acquisitionis approximately CAD$323 million. After completion of the Acquisition, the Company will own 100% equity interest in Guyana Goldfields.

Guyana Goldfields Inc.’s main assets are 100% interest in the Aurora Gold Mine project (in current production) and 15 separate exploration properties held.

According to the NI 43-101 technical report released by Guyana Goldfields in 2020, Aurora Gold Mine owned retained gold resource reserve volume of 178 tonnes, grading 2.7g/t in average, the mine life of the mine is 14 years. Production is expected to turn from open-pit mining to underground mining in mid-2021. The processing volume of the plant is 7,500 tonnes/day. The average annual gold production volume approximately 4.57 tonnes, of which, the average annual gold production from underground mining from 2022 to 2026 is expected to be approximately 5.27 tonnes.

According to the general research of Zijin (Xiamen) Engineering Co., Ltd.(a subsidiary of the Company)on the Aurora Gold Mine, through redesign by means such as re-measuring the open-pit mining boundary, joint open-pit and underground miningand optimising the mining and processing methods, etc., the over all designed project scale is expected to be approximately 2.5milliontonnes/year and the total mine life can be extended.