China: Zijin Mining to buy Canada’s Continental Gold for about US$1B

Zijin Mining, one of China’s biggest gold miners, has agreed to buy Canadian miner Continental Gold for CA$1.33 billion (US$999.92 million), claiming the purchase would increase its gold reserves and boost cash flow as well as profit.

Continental Chief Executive Officer Arti Sussman said the project is expected to reach production next year and the “timing is right for Continental to sell to a more experienced mine operator.”

Zijin expects its gold reserves to exceed 2,000 tonnes after the purchase, with output eventually increasing by about 20%. It expects the Buriticá gold project to generate “robust” profit and cash flow after becoming operational in 2020. 

The deal is, however, restricted by external conditions and faces uncertainty, Zijin stated, without giving further details.

Full Content: Reuters

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