On July 14th night, zijin mining group co., LTD. Public announcement, subordinate subsidiary northwest of zijin mining group co., LTD. (hereinafter referred to as the "northwest of zijin company") by way of contract transfer, acquisition of alex investment co., LTD. (hereinafter referred to as the "alex") held in xinjiang wei fu mining co., LTD. (hereinafter referred to as the "weifu mining") 100% stake, The equity transfer price is RMB 461,083,900 yuan, and the creditor's rights of Weifu Mining And Xinjiang Tongyuan Mining Co., LTD. (hereinafter referred to as "Tongyuan Mining") held by Alex and other creditors are purchased by RMB 38,236,100 yuan, with a total investment of RMB 49,932.00 yuan.
After the completion of the acquisition, Zijin Mining will hold 70% of tongyuan Mining's equity and 263 million yuan of creditor's rights to Tongyuan Mining. Tongyuan Mining holds 100% interest in Sawayardun Gold Mine in Wuqia County, Xinjiang province.
Introduction of gold mine project
Sawayartun gold mine is located in Wuqia County, Xinjiang, About 110 kilometers away from Wuqia County. The mining area is located in the west of the southwest Tianshan Mountains, 3,100~4,348 meters above sea level, the terrain is high in the north and low in the south, and the mountain is steep; The mining area is a typical pamir sub-area of continental climate, with annual precipitation of 1,000~1,500 mm and evaporation of 1,500 mm. There are no permanent residents in the mining area, and the transportation is ok. There is a 110kV substation in Urukchati Township, 45km away from the mining area. The perennial running water of Savayardon River, 2km away from the mining area, can meet the production and living water of the project, and auxiliary materials and fuel needed for project construction and production can be supplied by the local.
Sawayarten gold mine contains the mining right of "Sawayarten Gold Mine in Wuqia County, Xinjiang" and the exploration right of "Sawayarten Gold mine peripheral exploration in Wuqia County, Xinjiang", which are both held by the same origin mining industry. The Exploration of Savayarton Gold Mine has been completed, and the mining right certificate has been obtained. The mining right covers an area of 1.709 square kilometers, with underground mining and production scale of 140,000 tons per year. The term of validity is March 22, 2023, and the mine has not been developed and constructed. The 10.93 sq km outer exploration right of the Savayarton gold mine is valid until June 15, 2023.
The Savayarton gold deposit is a low-grade metamorphic leachate hydrothermal (carlin-like) type gold deposit. A total of 21 mineralization zones have been discovered in the mine, among which the main ore body is 3,660 meters long and the average thickness is 6.22 meters, which is like a plate. According to the Exploration Report of Sawayartun Gold Deposit in Wuqia County, Xinjiang, with 0.8 g/t as the boundary grade, there are 76,539,900 tons of ore and 119.5 tons of gold and metal in the mining area, with an average grade of 1.56 g/t. Among them, the amount of industrial ore is 23.2529 tons, the amount of gold metal is 60.07 tons, with an average grade of 2.59 g/ton; The low grade ore has 53.28700 tons of ore and 59.43 tons of gold and metal with an average grade of 1.12 g/t. The resources of this project reach super large scale.
The Sawayartun gold deposit is located in the central Asian gold belt with good regional metallogenic conditions, and there is a certain prospecting potential in the depth and surrounding of the deposit.
Project development Plan
According to the pre-feasibility study report prepared by Zijin Engineering Design Co., LTD., a subsidiary of Zijin Mining Co., LTD., the planned construction scale of the project is 8,000 tons/day, and the annual ore processing capacity is 2.64 million tons. The construction period is 2 years, and the production period is 25 years. Open-pit mining in the shallow part of the mine, open-pit mining first and underground mining, underground mining adopts sublevel caving without pillar.
The beneficiation process is preliminatively determined as coarse crushing, semi-autogenous grinding, stone crushing (reserved), ball grinding, flotation (containing middling regrinding), gold concentrate pretreatment (biological pre-oxidation), cyanide leaching adsorption. Because the ore belongs to the type of refractory smelting, the company plans to use the biological pre-oxidation method to treat refractory metallurgical concentrate, which has the advantages of simple process, low investment, high gold recovery, and environmental friendly, small pollution. The total investment of the project is expected to be 1.43 billion yuan. The product of the project is gold-loaded carbon, with an annual output of 2.76 tons of gold.
Iii. Project evaluation
Zijin mining group commissioned source of assets appraisal co., LTD. Zhejiang homologous mining co., LTD., xinjiang wu just county in xinjiang sarwar yar gold mining right value assessment, appraisal base date for March 31, 2022, according to the project tenure gold metal 119.5 tons of resources, for processing 2.64 million tons of ore quantity, evaluation methods of discounted cash flow method, The appraised value of the mining right is RMB 70,858.51 million.
Iv. Introduction to the project company
Weifu Mining was established in 2003 with a registered capital of 230 million yuan and is wholly owned by Hong Kong Alex Investment Co., LTD. As of June 30, 2022, Weifu Mining has total assets of 264 million yuan, total liabilities of 1.9045 million yuan and net assets of 262 million yuan. As the project has not yet been developed, the net loss achieved from January to June 2022 is 406,000 yuan. (The above financial data is not audited)
Tongyuan Mining has a registered capital of 50 million yuan, of which 70% is held by Weifu Mining, 15% by Xinjiang Baokai Nonferrous Mining Co., LTD., and 15% by Kashi Dadi Industrial Geological Exploration Co., LTD., subordinate to Xinjiang Bureau of Geology and Mineral Resources. As of June 30, 2022, Tongyuan Mining has total assets of 313 million yuan, total liabilities of 263 million yuan (after the completion of the acquisition, the creditor's rights are held by Weifu Mining and Zijin Northwest Company), net assets of 50 million yuan, and net profit from January to June 2022 is 0. (The above financial data is not audited)
There is no correlation between Weifu Mining, Tongyuan Mining and Zijin Mining.
Implications and risks of the acquisition
The board of Directors of Zijin Mining believes that The sawayartun gold mine is a rare undeveloped gold mine of 100 tons in China, which has a certain prospecting potential and is helpful for the company to further improve its gold resource reserves. The construction conditions of the project are good, and there is a small-scale mining right certificate, which lays a certain foundation for the subsequent expansion of production scale. The company has invested in wulagen lead-zinc mine and zinc smelting project in Wuqia County, and this acquisition has synergistic effects. Upon completion of the transaction, the company will acquire a 70% stake in Tongyuan Mining and will also hold 263 million creditor's rights in Tongyuan Mining, which tongyuan will repay through operating income.
Zijin mining said that the project resources have been preliminarily verified, but there is still a possibility of negative change in resource quantity and grade. The ore body surrounding rock condition is poor, the mining area is earthquake prone area, will increase the difficulty of mine engineering construction and mining cost; The deposit belongs to the fine disseminated deposit, the ore body contains arsenic, carbon and antimony, which affects the comprehensive recovery rate and the overall business benefit. The overall grade of the project is low, and the ore is difficult to mining, beneficiation and smelting. There are certain technical and operational risks, and the ability to resist market price risks is low. Please pay attention to it.
Canadian-listed GobiMin Inc. said the sale of Hong Kong Alex Investment Limited, a subsidiary of GobiMin, is expected to be completed on or before September 30, 2022. Mr. Felipe Tan, President and Chief Executive Officer of GobiMin, commented: "The decision to sell the gold project was made after careful consideration of all options open to us in the current economic and market conditions. The sale enables the Group to maintain a sound financial position and the net proceeds can be used to pursue new business opportunities."
