.jpg)
4 hours ago
1
Article content
A Chinese company’s subsidiary is buying a Vancouver-based gold miner for about $581 million amidst rising gold prices, subject to approval by the Canadian government, among others.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Article content
Lumina Gold Corp., which is listed on the TSX Venture Exchange, isn’t producing gold yet but is developing the Cangrejos project in Ecuador, which it describes as that country’s “largest primary gold deposit,” based on a study conducted in 2023. The project is being sold to a Singaporean entity of China’s CMOC Group Ltd.
Article content
Article content
“After advancing the Cangrejos project for over 10 years and taking it from no defined resources to being poised to be one of the largest gold projects globally, the Lumina Group is excited for the transition,” Marshall Koval, Lumina’s chief executive, said in a statement on Monday.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The company’s share price rose to its highest point in more than a decade on Monday, closing the day at $1.16 per share.
Article content
The deal’s completion is subject to approval by Lumina shareholders as well as the Supreme Court of British Columbia.
Article content
It will also need approval from the federal government, which in recent years has been blocking deals involving Chinese companies and Canadian miners developing critical minerals such as lithium and copper.
Article content
For example, China’s Zijin Mining Group Co. Ltd.’s attempt to invest in Vancouver-based Solaris Resources Inc. was subsequently blocked by the federal government last year.
Article content
Similarly, a Chinese financing deal for Montreal-based graphite miner Falcon Energy Materials PLC — then known as SRG Mining Inc. — last year was called off after the federal government raised its bar for foreign investments in Canadian critical minerals and criticized the deal. The company then moved to the United Arab Emirates in early July last year.
Article content
Article content
But gold is not considered a critical mineral, so Lumina’s transaction is unlikely to be viewed through the same lens, according to Marcus Giannini, an analyst at Haywood Securities Inc.
Article content
Stories You May Like
-
Live Q&A: The election and your taxes
-
Canadian history to go on the block as Hudson's Bay unwinds its empire
Advertisement embed-more-topic
Article content
“We do not foresee any national security issues with this deal given Cangrejos’ composition as a predominantly gold asset, maintaining a lesser copper component,” he said in a note to clients on April 21.
Article content
“Overall, we view this acquisition by CMOC as highly favourable to current Lumina shareholders given the strong all-cash premium, providing immediate value upon closing.”
Article content
In a similar deal last year, Vancouver-based Osino Resources Corp. also managed to sell itself to Yintai Gold Co. Ltd. for $368 million.
Article content
Article content
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.
Article content
English (US)