Chinese mining company CMOC Group has acquired all of Canadian miner Lumina Gold’s shares in all-cash transaction for C$1.27 per share for total proceeds of C$581 million ($420 million).
The sum represents a 71% premium to the company’s 20-day volume weighted average. The transaction, to be completed via a court-approved plan of arrangement, has the backing of shareholders holding 52.3% of Lumina’s stock.
Along with the stock purchase, CMOC has surchased $20 million worth of Lumina’s convertible notes to finance expenditures in accordance with an agreed upon work program and budget.
Lumina has been working developing the Cangrejos gold project in Ecuador which the company claims to be one of the biggest undeveloped gold projects globally containing 11.6 million ounces of gold. The latest available prefeasibility study outlined average production at 371 000 ounces of gold and 41 million pounds of copper per year.
“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 of the Cangrejos project to CMOC. The Lumina team looks forward to working with CMOC and all existing stakeholders to ensure the successful future development of the project,” said Lumina CEO Marshall Koval.
Theodor Lisovoy, Managing Editor, Rough&Polished
