Chinese firm Wing Hing International is planning to acquire an 87% interest in South Africa-based Taung Gold for HK$4.5bn (US$580m).

Taung Gold assets include Jeanett and Evander gold exploration projects in South Africa, along with various early-stage exploration projects.

The projects have estimated measured and indicated gold resources of 11.725Moz.

The total estimated capital cost, including plant construction for the Evander project, is $1.03bn and $1.06bn for the Jeanette project.

Taung Gold CEO Neil Herrick said that the firm will develop into one of the lowest cost producers in the South African gold mining environment when its projects move into production.