Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD

GOLD

SummaryQuotesChartsNews 
SummaryMost relevantAll NewsMarketScreener Strategies

China's Shandong Gold to buy Xinjiang-focused miner Hengxing

share with twitter share with LinkedIn share with facebook
09/30/2020 | 08:50am EDT

Shandong Gold Mining Co said on Wednesday it would buy Hengxing Gold Holding Co in an all-stock deal worth around HK$3 billion ($387 million) that gives it control of the Gold Mountain mine in China's Xinjiang region.

The purchase continues a prolific acquisition spree for state-run Shandong Gold in a year that has seen it agree to pay a sweetened A$565.6 million ($403 million) for Ghana-focused Cardinal Resources Ltd and C$230 million ($172 million) for Canada's TMAC Resources.

The Chinese miner will take Hong Kong-based Hengxing private after acquiring all the target's equity by issuing up to 159.48 million Hong Kong shares, or 3.68% of Shandong Gold's current share capital, according to a Shanghai Stock Exchange filing.

Trading in Shandong Gold's shares was suspended earlier on Wednesday at HK$19.08, implying it could pay the equivalent of HK$3.04 billion in stock for the acquisition.

Shareholders in Hengxing Gold, which has a market capitalisation of HK$3.45 billion according to Refinitiv Eikon data, will receive 0.172 Shandong Gold shares for every Hengxing share, the filing said.

Open pit mining at Gold Mountain, which lies around 500 km (311 miles) west of Xinjiang's capital Urumqi in China's far northwest, began in 2013 and the project has annual processing capacity of 5 million tonnes of ore.

The mine had 41.66 million tonnes of gold ore and 45,570.24 kg of gold metal content at the end of 2018, at an average grade of 1.09 grams per tonne of gold, Shandong Gold said.

The company added that its Hong Kong shares would resume trading on Oct. 5, while its Shanghai-listed shares will resume on Oct. 9 after the Golden Week holiday in China.

($1 = 7.7498 Hong Kong dollars)

($1 = 1.3382 Canadian dollars)

($1 = 1.4027 Australian dollars)

(Reporting by Tom Daly;Editing by Elaine Hardcastle)


share with twitter share with LinkedIn share with facebook
All news about GOLD
04:32pMaterials Down As Stimulus Doubts Offset Gold, Copper Strength -- Materials R..
DJ
04:18pMarkets mixed with all eyes on U.S. stimulus talks
RE
03:06pMarkets mixed with all eyes on stimulus talks
RE
12:52pGold jumps 1% as U.S. relief deal bets grow, dollar retreats
RE
10:54aAnglo American's S.Africa unit faces class action over Zambia lead poisoning
RE
08:53aSpot gold rises 1% to $1,925.46/oz
RE
07:28aCopper moves above $7,000 for the first time since June 2018
RE
07:00aSpot gold seen averaging $1,788/oz this year, $1,965/oz in 2021 - reuters pol..
RE
05:46aGold hits one-week peak as U.S. stimulus hopes dent dollar
RE
03:31aChina Shanghai Gold Futures Closing Prices, Volume
DJ
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term
TrendsBearishNeutralBullish