Chinese state group offers US$1 billion for Brazil-based mining company

17 November 2011

Shanghai, China, 17 Nov – Chinese state group Shandong Gold Group Co. Has made an offer of US$1 billion for Jaguar Mining Inc., a Canadian mining company with its headquarters in Belo Horizonte, Brazil, The Wall Street Journal reported citing a source close to the process.

According to the newspaper the Chinese group, which is directly controlled by the Shandong provincial government, offered US$9.30 per Jaguar Mining share, which is a premium of 73 percent on the closing share price on the New York Stock Exchange Tuesday.

On Wednesday the Canadian company issued a statement noting that it had received acquisition proposals in the last few weeks and added that those proposals were being analysed in order to maximise shareholder return.

Jaguar Mining is Canadian company with it executive office in Belo Horizonte and its administrative office in Concord, New Hampshire, United States, which is focused on gold mining in Brazil, particularly in the state of Minas Gerais. It is currently launching the Gurupi project in the state of Maranhão. (macauhub)