China's Zijin Mining Group to acquire Canada's Continental Gold

Source: Xinhua| 2019-12-03 05:05:44|Editor: yan
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TORONTO, Dec. 2 (Xinhua) -- China's Zijin Mining Group Co. is to acquire all of the outstanding shares of Canada's Continental Gold Inc. at a price of 5.50 Canadian dollars per share in cash, according to a news release Monday by Continental Gold Inc.

The price represents a premium of 29 percent over Continental's 20-day volume-weighted average price as of Nov. 29, 2019 on the Toronto Stock Exchange.

The total value is about 1.4 billion Canadian dollars (about 1 billion U.S. dollars). The transaction has been approved by the board of directors of Continental following the unanimous recommendation of a special committee of independent directors of Continental.

Newmont Goldcorp Corporation and directors and officers of Continental collectively holding approximately 21.5 percent of the outstanding Continental common shares have entered into voting support agreements to support the transaction, said the news release.

"The all-cash offer at a significant premium to market is an excellent outcome for our shareholders," said Ari Sussman, CEO and a director of Continental.

Formed in 1993, Zijin based in China's Fujian Province is a leading global mining company specializing in gold, copper, zinc and other mineral resource exploration and development.