Zijin Mining’s wholly owned subsidiary Zijin Gold is set to assume control of Chifeng Gold following its agreement to acquire a substantial shareholding.
Zijin Gold will acquire 242 million A shares from Chifeng Gold's largest shareholder, Li Jinyang, and Zhejiang Hanfeng, a 'concert party' of Li Jinyang, for 41.36 yuan ($6) per share.
This acquisition includes a 1.3% premium over the closing price of Chifeng’s shares before trading was halted, amounting to around 10bn yuan ($1.45bn) in total.
Additionally, Zijin Gold has entered a strategic investment agreement to subscribe for 311 million new H shares of Chifeng Gold under a specific mandate, for HK$30.19 ($3.85) per H share.
This represents approximately 83% of the average price over the 60 days prior to the trading suspension, with an investment totalling HK$9.38bn, equivalent to about 8.25bn yuan.
Following these transactions, Zijin Gold’s ownership in Chifeng will increase to 572 million shares, accounting for approximately 25.85% of Chifeng's total shares post-issuance of new H shares.
This will grant Zijin controlling authority over Chifeng Gold and allow for the consolidation of the latter’s financial statements into the group's records.
The transactions received approval during the ninth term of the board in 2026 and are not categorised as connected transactions or significant asset restructurings; hence, shareholder approval is not mandatory.
However, these transactions are contingent upon fulfilling certain precedent conditions and involve inherent investment risks.
Chifeng Gold currently operates six gold mines and one polymetallic mine across China, South East Asia and West Africa.
Its reported resources include 583t of gold with an average grade of 1.54 grams per tonne, alongside copper, zinc (lead), molybdenum and rare earths resources, as per its 2025 annual report.
In January this year, Zijin Gold signed a definitive agreement to acquire all issued and outstanding shares in Canadian company Allied Gold for an equity value of nearly C$5.5bn ($4.01bn), in an all-cash deal.
