After receiving a superior purchasing offer from Zijin Mining Group Co., Guyana Goldfields Inc. announced today it has accepted the proposal and entered into a binding agreement. Zijin, a Chinese producer and refiner of metals, will acquire all of the outstanding common shares of Guyana Goldfields at approximately C$323 million (US$237,422,312).
Prior to entering into the Zijin Arrangement Agreement, Guyana Goldfields was in talks with Silvercorp Metals Inc. which submitted an initial bid of approximately US$100M. Guyana Goldfields subsequently announced that it got a better deal. Silvercorp elected not to match the competing offer.
With the deal virtually closed, Zijin has agreed to provide Guyana Goldfields with a US$30 million secured loan facility to finance ongoing operations of the Aurora gold mine and to fund its other liquidity needs.
Alan Pangbourne, President and CEO of Guyana Goldfields said that 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. The official said that 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,” the Guyana Goldfields President expressed.
On behalf of Zijin, Chairman of the company Chen Jinghe, thanked the board of directors, Mr. Pangbourne, as well as the senior management team of Guyana Goldfields for their support and recognition of Zijin on this transaction. The Chairman said he and his team look forward to advancing and developing the next phase of the Aurora 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,” the Chairman stated.