A subsidiary of Zijin Mining (601899.SH) plans to acquire the Kazakhstan Raygorodok gold mine project for US$1.2 billion

Zhitong Finance App News, Zijin Mining (601899.SH) announced that Zijin Gold International Limited (“Zijin Gold International”), a wholly-owned subsidiary of the company, and Jinha (Singapore) Mining Co., Ltd. (“Jinha Mining”), a wholly-owned subsidiary of Zijin Gold International in Singapore, signed an agreement with Cantech S.à.r.l (“Cantech”). Jinha Mining intends to acquire RG Gold LLP (“RGG”) and RG Processing held by Cantech LLP (“RGP”) has 100% interest (RGG and RGP together the “target company”) and has obtained 100% interest in the Kazakhstan Raygorodok Gold Mine (“RG Gold Mine”) project. The transaction took September 30, 2025 as the reference date. The purchase consideration was determined at US$1.2 billion according to the target company's “no cash, no debt” principle on the reference date. The specific purchase consideration required to be paid will be adjusted by the parties to the transaction based on the actual conditions of cash, operating capital, and interest-bearing liabilities in the financial statements of the base date.

According to the announcement, the RG gold mine project is located in the Burabay region of Akmola province in northern Kazakhstan. It is about 70 kilometers from Shchuchinsk, 40 kilometers from the highway, and 66 kilometers from the railway station, with convenient transportation. The mining area has a hilly landscape, at an altitude of 350-500 meters. The temperature fluctuates greatly throughout the year, and the total annual rainfall is 320 mm. The project is a production mine, and production infrastructure conditions such as water supply, electricity supply, and communications are good. The RG gold deposit consists of 2 deposits in the north and south. According to the technical report submitted by AMC in October 2024, with oxidized ore and transition ore containing 0.3 g/ton of gold and 0.5 g/ton of primary ore as boundary grades, the resources and reserves of RG gold as of the end of 2023 are as follows:

The amount of resources held by the RG gold mine project (gold price 2,000 US dollars/ounce): 241 million tons of control+inference grade ore, 1.01 g/ton of gold average grade, and 242.1 tons of gold metal. The reserves held within the original planning and design of the RG gold mine (gold price 1,750 US dollars/ounce): 94.9 million tons of ore, an average grade of 1.06 g/ton of gold, and 100.6 tons of gold metal.

According to the announcement, Zijin Gold International, which is to be split, is the investor. If RG Gold is successfully completed, it will significantly increase Zijin Gold International's asset size, profit level and global industry position, and help Zijin Gold International's listing and issuance in the international capital market.