Another overseas acquisition success! ZHAOJIN MINING successfully completed the strategic acquisition of the Komahun Gold Mine in West Africa

According to the Wise Finance APP, recently, it was learned from Zhaojin Mining (01818) that its wholly-owned subsidiary Xinghe has completed the acquisition of 60% equity of West Gold Mining for a total transaction price of 180 million yuan, indirectly controlling the development of the Koma Hong Gold Mine.

The Koma Hong Gold Mine is located in Sierra Leone, Africa. The country is a friendly nation to China, with a stable domestic situation. The development of the gold mining industry is just beginning, with promising prospects and ample room for growth. The Koma Hong Gold Mine has all the necessary licenses, complete infrastructure, supporting mining facilities, and is a large-scale mine with near-term production. According to Zhaojin Mining's development plan, in the next phase, the project will expand its mining scale to 1500t/d based on a solid profit foundation, with an annual output reaching 57,000 ounces.

In addition, another reason that attracted Zhaojin Mining to acquire the Koma Hong Gold Mine is its favorable ore geological structure and significant exploration potential. According to reports from authoritative institutions, the Koma Hong Gold Mine covers an area of 100km², including 8 gold ore anomaly blocks, with a resource ore volume of 4.9403 million tons, gold metal content of 22,461.85 kg, and an average grade of 4.55g/t. The exploration work before this acquisition mainly focused on one block, with less work done on the remaining 7 blocks which show good potential. After the acquisition, Zhaojin Mining will increase exploration efforts in the other blocks.

Established in 2004, Zhaojin Mining was listed on the Hong Kong Stock Exchange in 2006. It is a comprehensive gold producer and gold smelting enterprise that integrates exploration, mining, ore processing, and smelting operations, focusing on the development of the gold industry. In 2023, Zhaojin Mining achieved operating income of 8.424 billion yuan and a net profit of 838 million yuan.

It is reported that this acquisition is another strategic move by Zhaojin Mining to expand its presence in the African mining market after acquiring the Abuja Gold Mine in Africa. This move is beneficial in forming economies of scale and synergy effects, and in the future, it will greatly contribute to Zhaojin Mining's support for the construction of the "Belt and Road" initiative, the creation of industrial competitive advantages, and the realization of win-win cooperation for all parties