China National Gold agreed to buy a 70% stake in a mine in the Kyrgyz Republic from Hong Kong-listed water purification equipment maker Chaoyue Group for USD21 million. The mine has around 97 tons of gold resources and one ton of copper resources. “When it is about to become commercial, the parent can sell it to the listed company on the latter’s request,” Song said. China Gold in late March posted a 200% increase in net profit to USD84.27 million. The company plans to produce 3.69 tons to 3.83 tons of gold this year, little changed on last year’s 3.79 tons. Copper output is projected at 9,800 tons to 11,500 tons, an increase of up to 17.6% from 9,781 tons last year. Its mainstay Chang Shan Hao mine A feasibility study on a second capacity expansion is being conducted. Song said the scale of expansion would be announced in the second half of this year. Citi has estimated the expansion could see mining and ore processing capacity double to 60,000 tons per day! this would be Be Big Numbers at CSH!
Tianzhu Yutian Construction Material Company Limited – Gold Mine
On 14 July 2009 China Nonferrous Metals announced that its wholly-owned subsidiary Shenzhen City Ruirui Technology Company Limited has entered into an Acquisition Agreement to acquire a gold mine located in Yumen City, Jiuquan Region, Gansu Province of the PRC wholly owned by Tianzhu Yutian Construction Material Company Limited(?????????????), for cash consideration of HK$50 million. The aggregate exploration area of the mine reaches 13.67 km2. The acquisition is completed on conditions including an ordinary resolution is passed by the independent shareholders at the SGM and obtaining a valuation report in relation to target company and the mine prepared by an independent valuer. According to the preliminary technical report, it is estimated that gold reserves in the mine will be approximately 9.909 tonnes.