Zijin Mining to acquire Guyana Goldfields in all-cash offer for $323 million

12 June 2020

On June 12, 2020, Zijin Mining Group Co., Ltd (SSE: 601899) (SEHK: 2899) and Guyana Goldfields Inc. (TSX: GUY) announced that they had entered into a binding arrangement agreement, pursuant to which Zijin will acquire all of the outstanding common shares of Guyana Goldfields by way of a plan of arrangement, for cash consideration of C$1.85 for each Guyana common share, valuing Guyana Goldfields at approximately C$323 million.

Zijin has also 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.

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.

Gowling WLG is counsel to Zijin with respect to this proposed transaction with a team that includes, among others, Brett Kagetsu, Cyndi Laval, France Tenaille, Stuart Olley and Ryan Cohen (securities/corporate/M&A); Ian Macdonald and Kean Silverthorn (Investment Canada Act); Timothy Ross and Emily Dies (financing); Steven Sofer and Heyla Vettyvel (litigation); Max Brunette and Amy-Lynn Kosick (employment); Adam Chamberlain and Laura Weingarden (environmental); Erin Runnalls (insurance); and Peter Zhang (China liaison).

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