By Micah Maidenberg
Zijin Mining Group Co. has agreed to take over Continental Gold Inc. (CNL.T), a Toronto-based company that has been developing a gold project in Colombia.
Zijin has agreed to acquire Continental for $5.50 Canadian dollars a share in cash, resulting in what the companies said Monday was an equity deal value of about C$1.4 billion. Shares of Continental closed Friday at $4.87 and are up 116% so far this year.
Continental owns and has been developing the Buritica gold mine in northwest Colombia. The property has an estimated 3.71 million ounces of gold and 10.7 million ounces of silver in reserve, according to a description of feasibility study of the project posted on Continental's web site.
"With production on the horizon in 2020, the timing is right for Continental to sell to a more experienced mine operator," Continental Chief Executive Ari Sussman said.
Fujian, China-based Zijin, which trades on the stock exchanges in Hong Kong and Shanghai, lists a range of mining assets on its website, including copper mines in Serbia and China, a lead and zinc property in China and smelters.
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