The necessary regulatory approvals have been granted by the relevant People’s Republic of China authority for the acquisition of Inter-Citic Minerals by Qing Hai Mining Acquisition Corporation, a wholly-owned subsidiary of Western Mining Group. Qing Hai will pay Can$2.05 per share in cash for all of the issued and outstanding common Inter-Citic shares. The acquisition was given a green light by the Ontario Superior Court of Justice last month.
Toronto-based Inter-Citic is an exploration and development company advancing its Dachang Gold Project in China. Dachang covers 279sqkm of newly-discovered at-surface gold mineralization in an under-explored district. Inter-Citic updated the resource estimate at the site earlier this year to a total 2.2 million ounces of contained gold. The company believes the site is poised to be one of China’s largest open pit gold mines.
Western Mining Group is an integrated resources development company based in China’s Qinghai province. It has total assets of about Can$5.5 billion and is involved in geological exploration, mining, processing, smelting, scientific research and development, trade, investment and financing. There are about 40 companies within the Western Mining Group.
The company’s president Xihong Pan says, “Our acquisition of Inter-Citic and the Dachang project is an important step in realizing our strategic goal of expanding the gold division of Western Mining.”