China’s Zijin Mining To Buy Continental Gold For $1 Billion Cash

(Kitco News) - China continues to assert its dominance in the gold market with the country's largest mining company submitting a cash offer of $1 billion for Canada's Continental Gold.

Monday, Zijin Mining announced that it was offering C$5.50 a share in cash for Continental, a premium of about 13% on the Canadian company's closing price on Friday.

"The transaction was unanimously approved by the special committee and the board of directors of Continental Gold," Zijin said in a press release. Along with approval from Continental's board of directors, Newmont Goldcorp, which holds a 19.9% stake in the company, said that it would back the proposed deal.

The proposed deal is still subject to a vote of Continental Gold shareholders, with the approval requiring at least two-thirds of the votes.

Merger-and-acquisition activity continues to heat up in the mining space as Zijin's proposal is the second in as many weeks. Last week Kirkland Lake Gold offered to buy Detour Gold in an all-share purchase valued at $4.9 billion.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 27911.30 0.11%
S&P 500 3141.63 0.29%
NASDAQ 8654.05 0.44%
TSX 16939.61 0.07%
TSX-V 536.32 0.00%

Resource Commodities

Name Last Change
Gold 1475.10 0.03%
Silver 16.90 0.30%
Copper 2.78 2.783
Platinum 901.00 0.67%
Oil 58.76 0.82%
Natural Gas 2.24 0.94%
Uranium 25.75 0.19%

@RSDigest ON TWITTER