China’s Shandong Gold to acquire Xinjiang-focused miner Hengxing

Changzhou, China

Shandong Gold Mining Co said on Wednesday it would buy Hengxing Gold Holding Co in an all-stock deal worth around HK$3 billion ($387 million) that gives it control of the Gold Mountain mine in China’s Xinjiang region.

The purchase continues a prolific acquisition spree for state-run Shandong Gold in a year that has seen it agree to pay a sweetened A$565.6 million ($403 million) for Ghana-focused Cardinal Resources Ltd and C$230 million ($172 million) for Canada’s TMAC Resources.

The Chinese miner will take Hong Kong-based Hengxing private after acquiring all the target’s equity by issuing up to 159.48 million Hong Kong shares, or 3.68% of Shandong Gold‘s current share capital, according to a Shanghai Stock Exchange filing.

Trading in Shandong Gold‘s shares was suspended earlier on Wednesday at HK$19.08, implying it could pay the equivalent of HK$3.04 billion in stock for the acquisition.

Shareholders in Hengxing Gold, which has a market capitalisation of HK$3.45 billion according to Refinitiv Eikon data, will receive 0.172 Shandong Gold shares for every Hengxing share, the filing said.

Open pit mining at Gold Mountain, which lies around 500 km (311 miles) west of Xinjiang‘s capital Urumqi in China’s far northwest, began in 2013 and the project has annual processing capacity of 5 million tonnes of ore.

The mine had 41.66 million tonnes of gold ore and 45,570.24 kg of gold metal content at the end of 2018, at an average grade of 1.09 grams per tonne of gold, Shandong Gold said.

The company added that its Hong Kong shares would resume trading on Oct. 5, while its Shanghai-listed shares will resume on Oct. 9 after the Golden Week holiday in China.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.