China Gold International to Acquire Tibetan Copper Mine for $742 Million

Aug 31 (Bloomberg)--

China Gold International Resources Corp., formerly known as Jinshan Gold Mines Inc., said it will acquire Skyland Mining Ltd. for $742.3 million to gain control of the Jiama copper mine in Tibet.

China Gold International, based in Vancouver, will issue 170.3 million common shares to buy Skyland from Rapid Result Investments Ltd. and China National Gold Group Honk Kong Ltd., a subsidiary of China National Gold Group Corp., the company said in a statement.

China National Gold Group owns a 39 percent stake in China Gold International and is using that company to consolidate holdings outside its core China operations, Frank Lagiglia, a spokesman for China Gold International, said today in a telephone interview.

The all-stock transaction is subject to investor and regulatory approvals.

China National Gold Group Hong Kong will receive about 51 percent of the shares issued for the purchase, and Rapid Result

Investments will receive about 49 percent, Lagiglia said. The shares are valued at $4.36 each, he said.

China Gold International fell 19 cents, or 3.9 percent, to C$4.73 at 4 p.m. in Toronto Stock Exchange composite trading. The shares have gained 49 percent this year.