Continental Gold Acquisition Receives Canadian Government Approval

SEATTLE (Scrap Monster): The acquisition of Canadian miner Continental Gold by Chinese Zijin Mining received approval from the Canadian government authorities. Accordingly, the transaction is expected to close within ten business days, subject to certain other closing conditions.

Following the completion of the transaction, Continental Gold’s common shares will be delisted from the Toronto Stock Exchange (TSX). The deal, first announced in December 2019, is the latest deal in gold sector.

The CAD$1.4 billion takeover deal received the Canadian Investment Canada Act approval. Earlier, it had obtained all three of the required regulatory approvals from the Chinese government authorities.

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The purchase of the assets will increase Zijin’s bullion reserves and provide big boost to its cash flow and profits. The acquisition is expected to lift its gold reserves to more than 2,000 tonnes. The company expects the total output to grow by nearly one-fifth. Continental’s Buriticá gold project in Colombia is expected to generate 250,000 ounces of gold per annum on average productive life of nearly 14 years, as per estimates.

Zijin Mining-China’s top gold producer has been on a drive to expand its footprints through series of acquisitions.