China’s Zijin Mining has emerged as the unnamed multinational that trumped Silvercorp Metals’ (TSX, NYSE: SVM) bid for Guyana Goldfields (TSX: GUY), with a deal that values the target miner at C$323 million ($238m).
The Fujian-based mining giant has offered Guyana C$1.85 in cash for each common share, which is 35% higher than Silvercorp Metals’ proposal.
Prior to signing the agreement with Zijin, Guyana said it had officially cancelled its previous arrangement with Canada’s Silvercorp, which produces silver, lead and zinc from mines in China.
Based on the terms of that deal, Guyana will have to pay Silvercorp C$9 million ($6.7m) for terminating the agreement signed in April.
On top of the cash offer, Zijin Mining has committed to loan its takeover interest $30 million to finance ongoing operations of its Aurora gold mine in Guyana and other liquidity needs.
For the rest of this article: https://www.mining.com/zijin-the-mystery-miner-buying-guyana-goldfields/