Securities Times reported that Zijin Mining Group plans to invest CNY 2.59 billion to acquire interests in seven prospecting rights to mines in Tibet and Gansu.

A subsidiary, Chuangxing Investment will purchase a 45% stake in Gold Eagle Mines for CNY 1.44 billion from Jinchuan Group Resources Holding. Gold Eagle Mines holds the entire 100% stake in Tibet Tianyuan Mineral Resources Development which owns a copper-gold mine in Xietongmen, Tibet.

Tianyuan Mineral owns two prospecting rights to the Xietongmen mine, one of which allows the company to mine an area of 12.89 square kilometers. This block has proven mineral reserves of 200 million tonnes including 122.5 tons of gold and 953,000 tons of copper. The other prospecting right covers an area of 109.43 square kilometers and has copper deposits.

Another wholly owned subsidiary of Zijin Mining, Ding Jin Ltd will fully acquire Long Province Resources for CNY 1.15 billion from Warrior Advance Pty Ltd. Long Province Resources holds a 90% stake in Gansu Longjin Mineral Resources and an 87% stake in Gansu Longao Mining.

Longjin Mineral Resources and Longao Mining jointly own the prospecting rights to a gold mine in Li county, Gansu province. The gold mine covers an area of 363,800 square kilometers and has total ore reserves of 7,959 tons, of which gold accounts for 4.29 million ounces or approximately 133.45 tons.

Gansu Yate Mining, a subsidiary of Zijin Mining, owns a gold mine next to the gold mine owned by Longjin and Longao. Zijin Mining plans to integrate the two mines after the purchase.

Separately, Zijin Mining said wholly owned subsidiary, Golden Lake Mining, sold Glencore Finance Europe SA's convertible bonds which it had previously subscribed to and posted a net investment return of USD 260 million. In addition, Golden Lake received interest of USD 11.42 million paid by Glencore through the end of June.

(Sourced from Securities Times)