Zijin Mining Group (HKG:2899, SHA:601899) unit Gold Source International Holdings will acquire a 100% stake in Newmont Golden Ridge, a unit of Newmont (ASX:NEM), for $1 billion, according to a Wednesday filing with the Hong Kong bourse.
Newmont Golden Ridge owns the entire stake in Ghana's Akyem Gold Mine project. The target company also has four prospecting licenses, three of them next to Akyem Gold Mines, and covers a total area of 79.59 square kilometers. The deal will be subject to certain conditions.
Of the total consideration, $900 million will be paid at the completion of the deal, while the remaining $100 million will be released upon the license ratification from the Ghana Parliament.
Zijin's Shanghai shares declined over 2% in morning trade, while its Hong Kong shares shed nearly 2%.
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