Shandong Gold nets court approval for Hengxing Gold privatization

Shandong Gold Mining Co. Ltd. said Jan. 28 that it is set to close its acquisition of Hengxing Gold Holding Co. Ltd. the same day and has received court approval to take the latter private.

Hengxing Gold's shares are to be delisted from the Hong Kong bourse following trading close Feb. 1.

Shandong Gold agreed to acquire Hengxing in an all-stock deal worth about HK$3 billion in October 2020, according to a filing with the Stock Exchange of Hong Kong.

In October 2020, Shandong Gold, which is listed in Shanghai and Hong Kong, agreed to acquire Hengxing Gold by issuing up to 159.48 million Hong Kong shares, or 3.68% of its capital. The acquisition gives Shandong Gold control of the Gold Mountain mine in China's Xinjiang region, which has an annual processing capacity of 5 million tonnes of ore.

The deal followed Shandong Gold's proposed acquisition of Canada's TMAC Resources Inc., which fell through, as well as Ghana-focused Cardinal Resources Ltd.

Agnico Eagle Mines Ltd. is acquiring TMAC, after the Canadian government rejected Shandong Gold's takeover bid due to national security concerns.