China Knowledge reported that Shanghai Construction Co Ltd which is principally engaged in building materials industrial production of construction products has inked a framework agreement to acquire major stakes in a gold mine located in Eritrea, Africa.

Pursuant to the agreement, China Shanghai Corporation for Foreign Economic & Technological Cooperation or SEFCO Group a wholly owned subsidiary of Shanghai Construction will acquire a 60% stake in Zara Mining Share Co for USD 80 million.

Upon completion of the acquisition, Shanghai Construction has option to acquire additional mining rights from Zara Mining for gold mines with reserves which have yet been confirmed.

A person familiar with the matter said the company would acquire CNY 1 billion worth of additional mine exploration projects from Zara Mining.

(Sourced from China Knowledge)