BNN Bloomberg/Aoyon Ashraf
“Chinese miners are buying up small Canadian gold producers as gold prices have rallied about 35 per cent from the start of last year. Zijin Mining Group Co. Ltd. agreed to buy Guyana Goldfields Inc. for cash on Friday, with a deal valuation of about $323 million. This follows the May announcement by Shandong Gold Mining Co. Ltd. to buy TMAC Resources Inc. for cash at an equity value of about US$149 million.”
USAGOLD note: If your goal is to build national gold reserves and there is a dearth of sellers in size to accommodate, the best approach is to buy production at its source – the mines. That has been the stated goal of Chinese gold mining companies for a number of years. These acquisitions of Canadian properties are part of a longer-term strategy to balance its national reserves.
Repost from 6-15-2020
