The takeover is valued at $1.37 billion.
Continental Gold, a Canadian mining company, won’t be Canadian much longer.
It’s being taken over by China’s Zijing Mining Group Co., one of China’s largest gold mining companies.
According to reports, “The acquisition would give Zijin control of the Buritica gold project in Colombia, which is currently being developed. Output at Zijin Mountain, China’s top gold mine which the producer is named for, is dropping because of depleting resources.”
The move will be a big boost to China’s strategic interests, as China gains access to a gold mine that can supplement their depleting homegrown-supply.
However, considering how closely connected all large Chinese companies are to the Communist Party, many will wonder why a Canadian company is even allowed to let a company from China buy them out.
On the positive side for Canada, Canadian mining company Kirkland Lake Gold Ltd recently bought Detour Gold Corp., in an acquisition valued at over $4 billion CAD.
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