China Gold eager to buy gold, copper mines in Canada
Canadian gold miner China Gold International Resources Corp. Ltd. on Thursday said it is eager to make an acquisition in Canada. Asset prices however remain very high despite a bomb-out mining sector. China Gold has two mines in China.
According to Reuters, small and medium-sized miners are struggling to raise funds as investors have cooled on the sector. But China Gold is in an enviable position of having ready access to finance through its biggest shareholder, China National Gold.
China National Gold is China's only state-owned gold mining enterprise and the country's biggest gold producer. It owns 39% of China Gold. China National Gold is perhaps best known for its attempt to buy African Barrick Gold a year ago, the report said.
China Gold executive vice president Jerry Xie told Reuters that his company would prefer to find an asset in Canada. But the Canadian gold miner was not willing to overpay for it, Xie added.
The report, quoting Xie, said that China Gold's ideal acquisition would be a property containing some 3 million ounces of gold or 1 million tonnes of copper, and with a complete feasibility study.