China Gold News On June 21, Chifeng Jilong Gold Mining Co., LTD. (hereinafter referred to as "Chifeng Gold") and Minmetals Resources Co., LTD. (hereinafter referred to as "Minmetals Resources") held a merger and acquisition signing ceremony in Beijing.The $7.5 billion price of the acquisition of 90% of Lao Sepon copper and gold mine held by Minmetals Resources has become another heavy event of overseas mergers and acquisitions in China's gold industry。

　　同日，Chifeng gold held a board of directors，Agreed that the Company signed a conditional Share Purchase Agreement with Album Investment Private Limited, the vendor, and Minmetals Resources Limited, the vendor's guarantor，To acquire 100 per cent of MMG Laos Holdings Limited held by the seller。Minmetals Resources Laos Holdings Limited is a wholly-owned subsidiary of Minmetals Resources, and its main asset is a 90% stake in the Sepon copper and gold mine in Laos, while the other 10% stake in the mine is held by the Lao government。

　　The Sepon copper-gold mine is an opencast copper-gold mine located in Sawan Nachet, southern province of Laos, which is about to be converted into a deep primary copper-gold mine。Minmetals Resources began the bidding work to sell the asset in 2017, and Chifeng Gold won in multiple rounds of bidding by virtue of its technical and management advantages in mining primary ore。

　　According to the announcement disclosed by Minmetals Resources on the Hong Kong Stock Exchange, as of the end of 2017, Sepon Copper-gold mine maintained gold ore reserves of 10.9 million tons, with an average grade of 3.9 g/ton, roughly calculated gold metal content is about 40 tons;Reserves of copper ore are 25.3 million tons with an average grade of 2.1%, a rough calculation of the amount of copper metal is 530,000 tons。In 2017, Sepon Copper and Gold Mine's operating revenue was 3.$900 million, earnings before interest, tax, depreciation and amortization (EBITDA) 1.$200 million。

　　Zhao Meiguang, controlling shareholder of Chifeng Gold, Lv Xiaozhao, Chairman of Chifeng Gold, Gao Xiaoyu, general manager of Minmetals Nonferrous Metals Co., LTD., non-executive director of Minmetals Resources, Xu Jiqing, executive director and executive general manager of Minmetals Resources and other relevant leaders attended the signing ceremony。

　　Zhao Meiguang believes that the successful signing of this merger project expresses the firm determination of Chifeng Gold to internationalization, which will further enhance the status and influence of Chifeng Gold in the gold industry, open an important window for its leapfrog international development, and lay a solid foundation for Chifeng Gold to achieve its ambitious vision。

　　"This merger is a historic milestone event for Chifeng Gold, and an important step for Chifeng Gold to go abroad and rush to the international market.。Lu Xiaozhao said that Minmetals Resources, as an overseas platform company of China Minmetals Holdings, has an excellent international management team, rich experience in international mining development and strong management strength, and has many overseas high-quality mineral resources, and is a leader and pioneer in overseas mergers and acquisitions of Chinese mining。This cooperation between Chifeng Gold and Minmetals resources will surely achieve the goal of strategic win-win. At the same time, the two sides will take this cooperation as an opportunity to carry out multi-level in-depth exchanges and cooperation in overseas mergers and acquisitions, mining exploration and development, technology research and other fields in the future, and jointly create a new chapter of mutual benefit, win-win and common development of strategic cooperation。

　　"Unite for a greater victory and mine a better future together.。Gao Xiaoyu said that Chifeng Gold and Minmetals Resources reached a cooperation agreement based on their respective development strategies, which is only the beginning of a follow-up series of in-depth cooperation, and this cooperation has laid the foundation for in-depth cooperation of the entire mining industry chain of the two sides。Minmetals Resources has the obligation and will do its best to cooperate with Chifeng Gold in the follow-up delivery of the project, and will also share overseas mining development experience with Chifeng Gold。

　　Xu Jiqing also pointed out，This signing will play a pivotal role in the asset structure and development process of both sides，Looking forward to the Lao Sepon Copper and Gold Mine under the leadership of new shareholders，Investment in exploration can be further increased，Optimize the mining and beneficiation process，Reduce costs to optimal levels，Tap greater development potential，Make it a demonstration base for overseas copper and gold mining。