Shandong Gold Mining will acquire a geological exploration right in the Sanshandao gold mining area in Laizhou City, north China’s Shandong Province, from its parent company Shandong Gold Group for $23.58m.

The target right contains 3.7558 million tonnes of usable ore, 31,387.20kg of metallic silver with an 8.36g per tonne average tenor and 11,169.80kg of metallic gold with a 2.97g per tonne average tenor.

Shandong Gold Mining said the purchase would enable the company to increase its metallic gold resources by over 11,000kg.

The company plans to extend the area of the Sanshandao mine and decrease its exploitation costs.