Vancouver-based China Gold International Resources Corp, a gold and copper producer with mines in Inner Mongolia and Tibet, is likely to make an acquisition by the end of next year, according to a senior company executive.
The company, whose biggest shareholder is state-owned China National Gold Group Corp with 39%, is evaluating four potential targets that meet its criteria on size and capital requirements, according to executive vice president Jerry Xie.
He says it is focusing on gold and copper assets and may spend as much as about $1 billion, although the total value of any deal could be higher if the company brings in a partner. While the assets China Gold is evaluating are scattered around the world, the sellers are all North American.
Jerry Xie says China Gold is looking for mines already in production or projects whose development is very advanced, preferably in politically stable jurisdictions like Canada. It’s also interested in joint ventures and partnerships, especially with larger and more experienced producers.
The company is targeting annual output of 500,000 ounces of gold and 330 million pounds of copper. Part of that growth will come from increasing output at its CSH gold mine in Inner Mongolia and its Jiama mine in central Tibet while the remainder is likely to come from an acquisition.