Inter-Citic to be bought by Western Mining for C$250 mln


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Western Mining Co Ltd
Inter-Citic Minerals Inc
20:48:36 IDT

Mon Aug 27, 2012 5:39pm IST

Aug 27 (Reuters) - Canadian gold explorer Inter-Citic Minerals Inc said China's Western Mining Group Co Ltd has agreed to buy it for C$250 million in cash.

Western Mining Group said it will pay C$2.05 per share of Inter-Citic, which represents a premium of 41.4 percent to the stock's Friday close.

The company is looking to expand the gold division of its unit Western Mining Co with the acquisition, said Xihong Pan, vice president of Western Mining Group.

Qinghai-based Western Mining Group Co Ltd owns base metals miner Western Mining Co Ltd.

The deal is expected to close in the fourth quarter of the year, Inter-Citic said in a statement.

Inter-Citic, which owns and operates the Dachang Gold Project in China, said in July it was in talks with a potential buyer.

Standard Chartered Bank is acting as financial adviser to Inter-Citic and Riverstone Advisory Pvt Ltd is the financial adviser to Western Mining

Shares of Inter-Citic, which have gained 73 percent of their value over the last three months, closed at C$1.45 on the Toronto Stock Exchange on Friday