Shandong Gold Group has made an offer to acquire Brazilian firm Jaguar Mining for $1bn by paying $9.30 per share in cash.

Jaguar Mining conducts mining operations in the Minas Gerais state’s prolific greenstone belt, with main development project Gurupi, which holds 2.3Moz of reserves.

The funds from the transaction will be utilised to secure financing for the Gurupi project, which is expected to commence operations in 2014, reports Reuters.