Chinese mining firm to acquire Guyana Goldfields Inc for Cdn$323 million

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Zijin Mining Group Co., Ltd and Guyana Goldfields Inc (GGI) today announced that they have entered into a binding arrangement agreement  pursuant to which Zijin will acquire all of the outstanding common shares of Guyana Goldfields for cash consideration of C$1.85 for each Guyana Common Share, valuing Guyana Goldfields at approximately C$323 million.     

Prior to entering into the Zijin agreement, Guyana Goldfields terminated its arrangement agreement with Canadian miner, Silvercorp Metals Inc dated April 26, 2020, as amended on May 16, 2020, a release today from the two companies said.

As noted in its press release on June 3, 2020, Guyana Goldfields received a binding proposal from Zijin to purchase all of the issued and outstanding Guyana Common Shares and notified Silvercorp that this offer constituted a “Superior Proposal” in accordance with the terms of the Silvercorp agreement. Silvercorp elected not to exercise its right to match and, as a result, Guyana Goldfields ended the Silvercorp agreement in accordance with its terms and entered into the Zijin Arrangement Agreement.

The release said that based on the closing price of the Silvercorp common shares on the Toronto Stock Exchange as of June 3, 2020, the Zijin Arrangement represents a premium of approximately 35% to the implied value of the consideration offered pursuant to the Silvercorp agreement.

Zijin has also agreed to provide Guyana Goldfields with a US$30 million secured loan facility to finance ongoing operations of the large scale Aurora gold mine in Region Seven and to fund its other liquidity needs.

Alan Pangbourne, President and CEO of Guyana Goldfields, stated:

“The all-cash offer from Zijin represents a significant premium to the amended Silvercorp offer price and is an excellent outcome for Guyana Goldfield’s shareholders. Zijin is a highly regarded mining company with an impressive track record of successful international acquisitions and operations. We look forward to working with Zijin over the coming weeks to close this transaction and transition to the new team.”

Chen Jinghe, Chairman of Zijin, stated:

“On behalf of Zijin, I would like to thank the board of directors, Mr. Pangbourne, President and CEO of Guyana Goldfields, as well as the senior management team of Guyana Goldfields for their support and recognition of Zijin on this transaction. Guyana Goldfields’ management team has dedicated tremendous effort and made significant contributions in progressing the Aurora Gold Mine and we look forward to advancing and developing the next phase of the mine. We believe that the Aurora mine is a high-quality gold asset with significant upside potential which we believe will be highly complementary to Zijin’s existing mining asset portfolio.

“Zijin strongly believes in the support and contribution to local communities in which it operates as well as maintaining cooperative relationships with all stakeholders. These values are a critical part of Zijin’s long-term goals. We are committed to continuing to operate in a safe, sustainable and responsible manner and look forward to working closely with the government of Guyana, the local communities and all other stakeholders to deliver a first-class operation that will significantly benefit the regional economy.”

The release said that the Zijin Arrangement Agreement has been unanimously approved by the Board of Directors of Guyana Goldfields who recommends that Guyana Goldfields shareholders vote in favour of the Zijin Arrangement.
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Comments

  • kamtanblog  On June 13, 2020 at 12:17 am

    Corruption or not to be ?
    That is the question !

    Shareholders bonanza ?
    Chinese takeover ?
    QED

    Kamtan de cynic

    • wally n  On June 13, 2020 at 10:27 am

      While everyone sleeps,these people are busy, very busy…..see a master here???

      Chinese Company’s Bid to Buy Nunavut Gold Mine of ‘Grave Concern’: Security Expert

  • BridgIt A Sam-Bailey  On June 13, 2020 at 12:06 pm

    I have to ask, why is Guyana deli grill off it’s assetts?

  • the only  On June 13, 2020 at 3:53 pm

    OUTSIDERS CAN BUY AND SELL PARTS OF GUYANA AND THE PEOPLE OF GUYANA HAVE NO IDEA WHAT IS GOING ON, AND ALL THEY CARE ABOUT IS WHO IS IN POWER. I FEEL VERY SAD FOR THE FUTURE OF GUYANA.

  • Jim  On June 13, 2020 at 11:39 pm

    How many tonnes of gold does Guyana have?

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