Shandong Gold fully acquires Jinshi Mining
Shanghai. December 14. INTERFAX-CHINA - Shandong Gold Mining Co. Ltd. (Shandong Gold), the listed unit of state-owned Shandong Gold Group Co. Ltd., plans to takeover Shandong Jinshi Mining Co. Ltd. (Jinshi) by purchasing the remaining 25 percent stake for RMB 415 million ($65.46 million), the firm announced Dec. 14.
Shandong Gold acquired a 75 percent stake in Jinshi in November 2010, Interfax previously reported.
The acquisition will allow Shandong Gold to integrate the target into its business structure, improving utilization rates, production costs and profitability, as well as giving it exclusive decision-making rights, said the announcement.
Jinshi Mining holds an exploration license valid until mid-2013 for a 16.7 square-kilometer gold field in Shandong Province's Laizhou City that contains 71.40 tons of gold resources and 94 tons of sliver resources.
Weakening gold prices have weighed on Shandong Gold's share price on the Shanghai Stock Exchange, which fell 1.08 percent on Dec. 14 to RMB 33.03 ($5.21) at 11:30 a.m.
The most-traded February 2012 gold contract on the COMEX division of the New York Mercantile Exchange slid 2.98 percent from Dec. 9 to close at $1,614 per ounce on Dec. 13.
- KHM