- Continental Gold (TSX:CNL) has been acquired by Zijin Mining in a buyout valued at C$1.4 billion
- Zijin purchased all outstanding shares in Continental Gold at a premium of 29 per cent
- Zijin was primarily interested in Continental’s Buriticá gold-silver project in Colombia, which will begin production later this year
- As a result of the buyout, Continental Gold will delist from the TSX on March 6
- Continental Gold Inc (CNL) was up 0.4 per cent, with shares trading for $5.50 and a market cap of $1.1 billion
Continental Gold (TSX:CNL) have been acquired by Zijin Mining in all-cash buy out valued at C$1.4 billion.
The two companies have been in negotiations since December last year. Zijin offered to buy all outstanding shares in Continental gold at a substantial 29 per cent premium.
Consequently, Continental Gold will be delisting from the TSX on March 6.
Continental Gold is currently developing the Buriticá project in Colombia. The company’s flag-ship project, Buriticá is scheduled to commence production in 2020 and has 3.71 million ounces of gold in mineral reserves.
Ari Sussman, CEO of Continental Gold, believes this offer has arrived at the right time.
“Continental has transformed the Buriticá project from a grassroots discovery into one of the world’s largest and highest-grade gold projects.
“With production on the horizon in 2020, the timing is right for Continental to sell to a more experienced mine operator,” he said.
CEO of Zijin, Chen Jinghe stated that his company was chiefly interested in the emerging Buriticá project.
“Buriticá is one of the largest and highest-grade gold projects in the world and represents a highly complementary addition to Zijin’s international asset portfolio.
“Continental also holds a sizeable and highly prospective land package in Colombia that provides Zijin with the leading position in an emerging world-class gold producing region,” he said.
Jinghe went on to say that Zijin is conscious of Continental Gold’s sustainable environment focus, and will continue developing Buriticá with similar care.
Newmont Goldcorp, one of the largest gold mining company in the world, previously held a 21 per cent interest in Continental Gold. Newmont and other major share holders all support the buyout.
Zijin is a Chinese mining company specialising in copper, zinc and gold. The company holds investments in nine countries and mainland China. Zijin is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
Continental Gold Inc. (CNL) was up 0.4 per cent, with shares trading for $5.50 at 9.55am EST.