[miningmx.com] — Johannesburg – Gold exploration and development company Taung Gold, which is focused on developing assets in SA, has been snapped up by Chinese company Wing Hing International.
Wing Hing which operates gold and coal mines as well as the sale of minerals in China, said on Tuesday that it had bought 87% of Taung for $580m, about R3.9bn.
Taung’s two flagship projects are Evander in Mpumalanga and Jeanette in the Free State.
The two projects, which have combined mineral resources of more than 24 million high-grade ounces, are progressing to pre-feasibility and bankable feasibility studies.
The projects would be developed over the next few years, with production estimated to commence in 2014 at Evander and in 2016 at the Jeanette Project.
Taung was considering various options for listing.
According to Wing Hing’s announcement to the Hong Kong Stock Exchange, the consideration – which is equivalent to about HK$4.5bn – is to be satisfied by the issue of up to 10 977 630 003 new shares at the issue price of HK$0.41 per share.
In addition, up to 1 009 616 519 new Wing Hing shares may be issued to current holders of options in Taung Gold.
Wing Hing CEO Jack Li said it was a rare opportunity to find a company like Taung Gold with large gold reserves.
“Taung Gold is the appropriate channel for Wing Hing to further develop its gold mining related business globally,” Li said, adding that Wing Hing expected to create synergies and expand its mining business in SA and globally.
The two companies have been in discussions for about 12 months.
