China’s Zijin Mining has received approval from the Canadian Investment Canada Act to acquire 100% equity interest in mining firm Continental Gold for C$1.33bn ($996m).
Additionally, the company received all three of the required regulatory approvals from China.
In December last year, Zijin Mining signed a definitive agreement to acquire Continental Gold.
The company agreed to buy all of the outstanding shares of Continental Gold priced at C$5.50 ($4.14) a share.
Expected to be completed within ten business days, the transaction is subject to customary closing conditions.
The deal will enable Zijin to access Continental Gold’s 100%-owned flagship high-grade Buriticá gold project in the northwest region of Colombia.
First production from Buriticá gold mine is expected this year. The mine will produce an average of 314,000oz of gold a year for the first five years, and average 265,000oz over the life of mine, which is estimated to be 14 years.
Continental Gold said in a statement: “As previously disclosed, the transaction provides for the acquisition by the Purchaser of the issued and outstanding common shares of the Company by way of a statutory plan of arrangement under the Business Corporations Act (Ontario).
“Each Continental shareholder will receive cash consideration of C$5.50 ($4.1) for each common share held.”
At present, Zijin Mining owns a total volume of 1,887t of gold resources reserve on equity basis.
Following the acquisition of the Buriticá gold mine, its gold resources reserve volume will be increased by 243t on equity basis reaching 2,130t. This will represent a 12.88% increase.
Furthermore, the company anticipates that the introduction of the Buriticá project will elevate its mine-produced gold production and increase the profit generated from the gold segment.