Inter-Citic Minerals is being acquired by Western Mining Group, with the two companies signing a definitive agreement for the acquisition. Inter-Citic’s Board of Directors has voted unanimously to accept the conditions of the sale in the best interest of its shareholders.
The Canadian explorer’s main project at Dachang in Qinghai province of western China has been explored during the last seven years. Dachang covers 279sqkm of newly-discovered at-surface gold mineralization in an under-explored district. Inter-Citic reported a measured and indicated resource of 1.88 million ounces of contained gold and commenced a drill and 10,000 metre trenching plan in August 2011. 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 terms will be outlined in a circular to all shareholders during the next six weeks. The arrangement will be subject to the approval of at least 66.6% of the votes cast at a special meeting of Inter-Citic shareholders as well as the approval of the Ontario Superior Court of Justice. The transaction is expected to be completed in the fourth quarter of 2012.
Inter-Citic’s chief executive officer James Moore says, “I have been impressed by Chairman Wang and his team at Western Mining. Under his leadership Western Mining has recognized the opportunity which the Dachang project provides to make an aggressive step into the gold industry and at the same time provide Inter-Citic shareholders with the best proposal that management has considered. We look forward to continuing to work with the Western Mining team on this important transaction.”
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. We look forward to working with all stakeholders, from shareholders to employees, joint venture partners and relevant government parties, in concluding a successful transaction.”