Canadian Gold Producer Acquired by Chinese Mining Company

August 27, 2020 Updated: August 27, 2020

A Canadian-based gold producer that has operated a mine in Guyana since 2015 has been acquired by Zijin Mining Group Co. Ltd., a multi-national mining company headquartered in mainland China.

The acquisition of Guyana Goldfields Inc., which owned Aurora Gold Mine in Guyana, South America, makes it the third Canadian mining company Zijin has bought in the last two years.

Zijin’s majority shareholder is Minxi Xinghang State-owned Asset Investment Co., Ltd, which is owned by the Chinese communist regime.

The transaction was completed on Aug. 25, and shares of Guyana are expected to be delisted from the Toronto Stock Exchange within one to three business days after the acquisition, according to a press release.

Guyana informed its shareholders on June 26 that it was looking for new financing to support its open pit waste and underground mining operations. The company initially chose Silvercorp Metals Inc., another Canadian-based mining company, as its planned purchaser, but changed its mind after Zijin submitted its proposal.

Headquartered in Fujian, Zijin specializes in exploring and developing copper, zinc, gold, and other minerals. The company is listed on both the Shanghai Stock Exchange and Hong Kong Stock Exchange.

Since 2018, Zijin has acquired Nevsun Resources Ltd, a Vancouver mid-tier miner, and Canadian gold mining company Continental Gold.

According to its website, Zijin aims to become an “extra large-scale international mining group with high technology and efficiency” by 2030.