A subsidiary of Western Mining Group will acquire Inter-Citic Minerals after approval for the arrangement was declared by the Ontario Superior Court of Justice. The Qing Hai Mining Acquisition Corporation will buy all the issued and outstanding shares of the company, with the deal scheduled to close next week.
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 group.
Toronto-based Inter-Citic Minerals is advancing its main Dachang Gold Project in China’s Qinghai province, which has been the focus of exploration during the last seven years. 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.
The acquisition deal will see Western pay Can$2.05 per Inter-Citic share, with a total transaction value of Can$250 million. The transaction is expected to be completed before the end of 2012.
Western Mining’s president Xihong Pan says his company is excited by the move. “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.”