Wednesday, 12th November 2008 (334 views)

Shandong Gold Mining has announced that it intends to acquire a controlling stake in Chifeng Chaihulanzi Gold Mining.

The latter firm is licensed to exploit gold in Chifeng City, in the Inner Mongolia Autonomous Region.

And Shandong Gold Mining, a Chinese gold producer, has revealed that it plans to buy at least 70 per cent of the company.

The Chifeng Chaihulanzi mine had a reserve of more than 1.6 million tonnes of ores with an average tenor of 5.44 grams per ton at the end of last year.

No price has not yet been determined, with Shandong Gold Mining intending to evaluate assets before the deal is finalised.

The company stated that the measure is intended to increase its retained reserves, as well as improve profitability and lower production costs.

It recently reported that profits in the third quarter of 2008 had risen by 310 per cent compared to the same period in the previous year.

 

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