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November 16, 2011

China`s Shandong Gold bids $1 billion for Jaguar Mining - GOLD NEWS | Mineweb

73 percent higher than the last trading price of Jaguar Mining - Take the money and run!!


China's Shandong Gold bids $1 billion for Jaguar Mining

Sources close to the proposed deal said Wednesday China's Shandong Gold Group has made a $1.0bn offer to acquire Jaguar Mining, one of Brazil's fastest-growing gold producers, and has prepared cash to get the deal done.

Author: By Coco Li, Feng Wang and Ken Wills (Reuters)
Posted:  Wednesday , 16 Nov 2011

BEIJING (Reuters) - 

China's Shandong Gold Group, the parent of Shandong Gold Mining (600547.SS: Quote, Profile, Research) and a big gold producer, has made a $1.0 billion offer to fully acquire Brazil's Jaguar Mining (JAG.N: Quote, Profile, Research) (JAG.TO: Quote, Profile, Research), two sources familiar with the matter told Reuters on Wednesday.

The offer from Shandong Gold was $9.3 per share for Jaguar, or 73 percent higher than the last trading price of Jaguar Mining of $5.39 per share in New York.

Shandong Gold will pay in cash, the sources, who requested not to be named, told Reuters.

Taking advantage of a strong yuan, Chinese resources companies have been hunting overseas for the minerals needed to power China's fast-growing economy.

Jaguar Mining is one of Brazil's fastest-growing gold producers, with operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar's main development project is Gurupi, which holds reserves of 2.3 million ounces.

Li Zhongyi, vice general manager of Shandong Gold in charge of international deals, declined to comment. A spokesman for Jaguar was not immediately available for comment.

Recent resources M&A deals from China have included Minmetals Resources' $1.28 billion (1208.HK: Quote, Profile, Research) planned takeover of Africa-focused copper miner Anvil Mining (AVM.AX: Quote, Profile, Research) and Sinopec Group's C$2.2 billion ($2.1 billion) agreement in October to buy Canadian oil and gas explorer Daylight Energy Ltd (DAY.TO: Quote, Profile, Research).

Sinopec Group is the parent of Hong Kong-listed and Shanghai-listed China Petroleum & Chemical Corp (Sinopec) (0386.HK: Quote, Profile, Research)(600028.SS: Quote, Profile, Research).

(Editing by Don Durfee)

 

Read the whole article here: http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=139799&sn=Detail&pid=504

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