China's Zijin Mining to take 9.9% stake in Canada's Montage Gold
Canadian miner Montage Gold on Tuesday said Chinese mining firm Zijin Mining Group would take a 9.9% strategic stake in the company through its brokered private placement.
Zijin Mining will purchase 32.7-million shares out of nearly 97.1-million common shares of the Vancouver, Canada-based company at C$1.75 a share, coming to nearly C$57.3-million upon completion of the offering by August 12.
The deal comes as Canada seeks to tighten its Investment Canada Act, under which deals involving a foreign company are reviewed to safeguard national security.
Montage said it believes the investment does not require approval from the Canadian government because Zijin will own less than 10% of Montage upon closing of the transaction, gold is not listed as a critical mineral by the Canadian government, and Montage's assets are outside of Canada.
In 2022, Canada ordered three Chinese companies to divest their investments in Canadian critical minerals, citing national security.
Earlier this year, copper miner Solaris Resources reported that Chinese state-owned Zijin Mining was planning to acquire a 15% stake in the Canadian miner, but scrapped the plans as it feared the deal was unlikely to meet the foreign investment standards.
Canada has told the mining industry that any major deals targeting the country's producers of critical minerals would only be approved under "the most exceptional circumstances."
Gold does not feature in the country's critical minerals list.
As part of the deal, the Lundin Family Trust also agreed to increase its stake in Montage from 17.7% to 19.9%.
Proceeds from the offering will be used for development expenditures and exploration at Montage's Kone project in Ivory Coast.
Montage said the investment will help it raise additional capital. It plans to have its additional financing in place before the 2025 first quarter when it will start construction of the Kone mine.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
