{"id":1152766,"date":"2019-12-02T07:00:06","date_gmt":"2019-12-02T13:00:06","guid":{"rendered":"https:\/\/www.mining.com\/?p=1008156"},"modified":"2019-12-02T07:00:06","modified_gmt":"2019-12-02T13:00:06","slug":"zijin-mining-to-buy-canadas-continental-gold-in-1-billion-deal","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1152766","title":{"rendered":"Zijin Mining to buy Canada\u2019s Continental Gold in $1 billion deal"},"content":{"rendered":"<p>Zijin Mining, China\u2019s No.1 gold producer, is <a href=\"https:\/\/www.newswire.ca\/news-releases\/zijin-mining-to-acquire-continental-gold-in-friendly-all-cash-offer-for-c-1-4-billion-889748272.html\">buying<br \/>\nCanadian miner Continental Gold (TSX: CNL) for almost C$1.4 billion ($1bn)<\/a>,<br \/>\nin a move aimed at increasing the company\u2019s bullion reserves and boosting cash<br \/>\nflow as well as profit.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The mining giant is offering C$5.50 a share in cash, a<br \/>\npremium to Friday\u2019s close price of C$4.87.&nbsp;The friendly deal will give it<br \/>\naccess to Continental\u2019s main asset \u2014 the Buritic\u00e1 gold project in Colombia \u2014 which<br \/>\nis expected to begin production next year.<\/p>\n<p>Buritic\u00e1 has measured and indicated gold reserves of 165.47<br \/>\ntonnes and an inferred reserve of 187.24 tonnes, Zijin said, adding that the<br \/>\nacquisition of Continental would boost its gold reserves to more than 2,000 tonnes,<br \/>\nwith output growing by nearly 20%.<\/p>\n<p>The Chinese gold, copper and zinc miner&nbsp;has been<br \/>\nexpanding its footprint by acquiring assets from Africa to Australia.<\/p>\n<p>In November, Zijin announced it was buying partner <a href=\"https:\/\/www.mining.com\/web\/chinas-zijin-buys-freeports-copper-gold-assets-in-serbia-for-up-to-390-million\/\">Freeport<br \/>\nMcMoran\u2019s copper-gold assets in Serbia<\/a> for up to $390 million,<br \/>\nsubstantially boosting its resources of both metals.<\/p>\n<p>Last year, it&nbsp;<a href=\"https:\/\/mining.com\/chinas-zijin-wins-race-serbias-largest-copper-mine\/\"  rel=\"noreferrer noopener\">spent $1.26bn for a 63% in Serbia\u2019s largest copper mining and<br \/>\nsmelting<\/a>&nbsp;complex RTB Bor. <\/p>\n<p>It also trumped Lundin Mining\u2019s&nbsp;(TSX:LUN) earlier <a href=\"https:\/\/www.mining.com\/chinas-zijin-buy-nevsun-1-41bn-lundin-takeover-rejected\/\">hostile<br \/>\nbid&nbsp;for Canada\u2019s Nevsun Resources<\/a>, gaining access to yet another<br \/>\nSerbian asset \u2014 Timok copper and gold project. With the move, it also secured<br \/>\nownership of the Vancouver-based miner\u2019s flagship operation, the Bisha<br \/>\ncopper-zinc mine in Eritrea.<\/p>\n<p>The world\u2019s largest gold company, Newmont Goldcorp (NYSE:<br \/>\nNEM)(TSX: NGT) said in a separate statement that it would support Zijin\u2019s bid<br \/>\nto acquire Continental by selling its 19.9% equity stake in the Canadian miner and<br \/>\nits convertible bond for $260 million. <\/p>\n<p>With the <a href=\"https:\/\/www.mining.com\/web\/australias-evolution-mining-to-buy-canadian-gold-mine-from-newmont\/\">announced<br \/>\nsale of Red Lake for $375 million<\/a>, the mining giant said it expected to<br \/>\nrealize $635 million in total cash proceeds when the transactions close in the<br \/>\nfirst quarter 2020.<\/p>\n<p><em>More to come\u2026<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deal would give China&rsquo;s No.1 gold producer access to the Buritic&aacute; gold project in Colombia, expected to begin production next year.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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