CMOC announced the acquisition of all equity in Lumina Gold for 581 million Canadian dollars.

On April 21, CMOC announced that, with the approval of its investment committee, it would acquire all issued and outstanding common shares of the Canadian publicly listed firm Lumina Gold (TSXV:LUM) through an overseas entity in an all-cash transaction, with a total consideration of approximately C$581 million.

Lumina Gold is a precious and base metal exploration company listed on the TSX Venture Exchange, headquartered in Vancouver, and holds 100% ownership of the Cangrejos gold mine project located in the El Oro Province in southwestern Ecuador.

As the core asset of the transaction, Cangrejos is a large-scale primary gold mine project in Ecuador, which completed a pre-feasibility study in 2023. According to the pre-feasibility study report, Cangrejos has a resource of 1.376 billion mt with an average gold grade of 0.46 g/t, containing 638 mt of gold metal, and a reserve of 659 million mt with an average gold grade of 0.55 g/t, containing 359 mt of gold metal. The future mine life is estimated to be 26 years. The mine is a typical porphyry deposit with a large volume, shallow burial, full open-pit mining, and a low stripping ratio. Coupled with complete infrastructure such as power, water resources, roads, and ports in the surrounding area, the mining costs are expected to be competitive. The mine is currently still under exploration within the mining rights area and at deeper levels of the ore body.

The acquisition price translates to C$1.27 per share, representing a 41% premium over the latest closing price on April 17. Meanwhile, CMOC signed a subscription agreement with Lumina to issue convertible bonds totaling $20 million to meet the future operational needs of the Cangrejos gold mine project.

It is reported that the two parties began in-depth discussions in H2 last year and, after a long period of exclusive and friendly negotiations, finally reached the acquisition agreement. Currently, the agreement has received voting support from 52.3% of Lumina's shareholders, and the subsequent process will proceed in accordance with local public takeover procedures.