China National Gold Acquires Controlling Stake in Jinshan Gold Mines from Ivanhoe Mines
|Areas||Asia Practice, Mining and Natural Resources|
Goodmans represented Ivanhoe Mines in connection with the sale of its stake in Jinshan Gold Mines to China National Gold Group Corporation. On May 13, 2008 a wholly-owned subsidiary of China National Gold Group Corporation acquired a 42% controlling stake of Jinshan Gold Mines from Ivanhoe Mines. China National Gold became Jinshan’s largest shareholder acquiring 67,520,060 Common Shares of Jinshan and a promissory note of $7.5 million for an aggregate purchase price of $217.7 million.
China National Gold is a large-scale, state-owned Chinese enterprise and is the largest producer of gold in China. It is active in all facets of the gold mining industry from engineering and fabrication of heavy mining equipment for internal use and export abroad, exploration, mining, refining and gold and silver bullion sales. China National Gold produces approximately 20% of the total gold production in China and controls over 30% of the known gold reserves in China.
Jinshan, based in Vancouver, BC, is a Canadian mining company focused on gold production in China. Its Chang Shan Hao Gold Mine is one of China's largest foreign-owned gold mines.
Ivanhoe Mines is an international mining company with operations focused in the Asia Pacific region.