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China's Zijin Mining to buy Guyana Goldfields for $238 mln
2020/06/15 6244

BEIJING, June 12 (Reuters) - China's Zijin Mining said on Friday it would acquire Guyana Goldfields for C$323 million ($238 million), bringing an end to a protracted takeover battle for the Canada-listed gold miner.

Toronto-based Guyana Goldfields announced on June 3 that it had received a binding proposal from an unnamed overseas-based miner to acquire the company, valuing it around 35% higher than a previously accepted offer from Silvercorp Metals.

On Friday, Zijin, one of China's biggest gold producers, was confirmed as the mystery bidder behind the higher all-cash offer to buy Guyana Goldfields, whose flagship asset is the Aurora gold mine in Guyana, for C$1.85 per share.

Zijin has been on an acquisition spree, wrapping up its purchase of Continental Gold for C$1.3 billion in March and earlier this week taking 50.1% in a copper miner in Tibet for $548 million.

"The all-cash offer from Zijin represents a significant premium to the amended Silvercorp offer price and is an excellent outcome for Guyana Goldfield's shareholders," Guyana Goldfields CEO Alan Pangbourne said in a statement.

Zijin has also agreed to provide Guyana Goldfields with a $30 million loan to finance ongoing operations at Aurora and for other liquidity needs.

"We believe that the Aurora mine is a high-quality gold asset with significant upside potential," Zijin chairman Chen Jinghe said, adding that his company looked forward to "advancing and developing the next phase of the mine".

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