20 Sep 2010 07:43

Jinchuan Group to acquire Canada's Continental Minerals

Shanghai. September 20. INTERFAX-CHINA - Jinchuan Group Ltd. plans to spend CAD 432 million ($419.08 million) to acquire Canadian-based Continental Minerals Corp., the Canadian company announced Sept. 17.

Continental Minerals is an exploration and development company listed on both the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSE). Mainly focusing on mineral projects in Asia, it currently owns the Xietongmen copper-gold deposit in the Tibet Autonomous Region which holds total proven reserves of 220 million tons.

According to the announcement, Jinchuan Group has signed a purchase agreement to buy a total of 166 million Continental Minerals shares at CAD 2.60 ($2.52) per share, 13 percent higher than the company's closing price on Sept. 14 on the TSE.

The deal is subject to approval from both China and Canada's regulatory authorities.

In January 2007, Jinchaun Group and Continental Minerals signed an agreement to jointly develop mineral resources in China.

- KY