The Globe and Mail reports in its Saturday, June 13, edition that China's Zijin Mining Group said on Friday it would acquire Guyana Goldfields ($1.76) for $323-million.
A Reuters dispatch to The Globe reports that 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 about 35 per cent more than a previously accepted offer from Silvercorp Metals ($6.40).
On Friday, Zijin, one of China's biggest state-controlled gold producers, was confirmed as the mystery bidder behind the higher all-cash offer to buy Guyana Goldfields for $1.85 a share.
Zijin has been on an acquisition spree, wrapping up its purchase of Continental Gold for $1.3-billion in March and earlier last week taking a 50.1-per-cent interest in a copper miner in Tibet for $548-million (U.S.).
While the deal falls below Canada's review threshold, all foreign investments by state-owned firms face enhanced scrutiny under toughened takeover rules introduced by the Canadian government in April, raising the prospect of delay.
Zijin has also agreed to provide Guyana Goldfields with a $30-million (U.S.) loan to finance continuing operations.
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