Zijin Mining Group Co., Ltd and Guyana Goldfields Inc (GGI) today announced that they have entered into a binding arrangement agreement pursuant to which Zijin will acquire all of the outstanding common shares of Guyana Goldfields for cash consideration of C$1.85 for each Guyana Common Share, valuing Guyana Goldfields at approximately C$323 million.
Prior to entering into the Zijin agreement, Guyana Goldfields terminated its arrangement agreement with Canadian miner, Silvercorp Metals Inc dated April 26, 2020, as amended on May 16, 2020, a release today from the two companies said.
As noted in its press release on June 3, 2020, Guyana Goldfields received a binding proposal from Zijin to purchase all of the issued and outstanding Guyana Common Shares and notified Silvercorp that this offer constituted a “Superior Proposal” in accordance with the terms of the Silvercorp agreement.
Silvercorp elected not to exercise its right to match and, as a result, Guyana Goldfields ended the Silvercorp agreement in accordance with its terms and entered into the Zijin Arrangement Agreement.
The release said that the Zijin Arrangement Agreement has been unanimously approved by the Board of Directors of Guyana Goldfields who recommends that Guyana Goldfields shareholders vote in favour of the Zijin Arrangement.
