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Zijin Mining completes acquisition of Guyana Goldfields
On August 25, 2020, Zijin Mining Group Co., Ltd (SSE: 601899) (SEHK: 2899) and Guyana Goldfields Inc. (TSX: GUY) announced the completion of the previously announced statutory plan of arrangement under the Canada Business Corporations Act involving Guyana, Zijin and 12049163 Canada Inc., an indirect wholly-owned subsidiary of Zijin, following receipt of all required regulatory approvals and satisfaction of all closing conditions. Pursuant to the arrangement, Zijin acquired all of the outstanding common shares of Guyana Goldfields for cash consideration of C$1.85 for each Guyana common share, valuing Guyana Goldfields at approximately C$323 million.
Zijin also provided 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.
Zijin is based in Fujian, China and is a leading global mining company specializing in gold, copper, zinc and other mineral resource exploration and development. Canada-based Guyana Goldfields is a gold producer primarily focused on the exploration, development and operation of gold deposits in Guyana, South America.
Gowling WLG was counsel to Zijin with respect to this transaction with a team that included, among others, Brett Kagetsu, Cyndi Laval, France Tenaille, Stuart Olley, Tara Amiri, Ethan Chang and Ryan Cohen (securities/corporate/M&A); Ian Macdonald and Kean Silverthorn (Investment Canada Act); Timothy Ross and Emily Dies (lending); Michael Watson, Steven Sofer and Heyla Vettyvel (litigation); Max Brunette and Amy-Lynn Kosick (employment); Adam Chamberlain and Laura Weingarden (environmental); Erin Runnalls (insurance); Brent Kerr and Anita Yuk (tax), and Peter Zhang (China liaison).
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