China's Zijin Mining Buys into Canadian Junior Inter-Citic

BEIJING, Apr. 16 -- Inter-Citic Minerals Inc., a junior Toronto miner operating in China, is getting a C$18.6 million strategic investment from Zijin Mining Group Co. Ltd., China's largest gold producer.

The financing, announced Thursday, will make Zijin the largest shareholder of Inter-Citic.

Under an agreement with Zijin and ICBC Credit Suisse Asset Management Co. Ltd., Zijin will buy 16 million shares of Inter-Citic at C$1.16 per share in a private placement that will generate C$18.56 million for the Canadian miner.

The private placement will give the Chinese company 19.2 per cent of Inter-Citic and will help finance development of the Toronto company's Dachang gold project in China.

Zijin is China's largest gold producer, China's third largest copper producer, and one of China's six major zinc producers. It trades on the Hong Kong and Shanghai stock markets and has a stock value of about $20 billion.