China Purchasing Canadian Gold Miners Amid Gold Rally

As the coronavirus pandemic significantly impaired economies around the world and seeded uncertainty and volatility in global equity markets, it appears that gold prices are one of the few to come out on top. Since the beginning of the year, gold prices have increased by approximately 35%, given that the commodity’s stability as a store of value has increased its demand.

As such, Canada’s sizeable amount of gold reserves have caught the attention of international miners. Some of the smaller gold producers in Canada are being bought up by Chinese miners, for a price that hinders any other otherwise competitive offers. Zijin Mining Group Co. Ltd, has recently purchased Guyana Goldfields (TSX: GUY) for a deal valuation of approximately $323 million, despite facing competition from other bidders.

Silvercorp Metals (TSX: SVM) initially offered Guyana a price of $0.60 per share, which was then followed by a rival offering from Gran Colombia Gold Corp (TSX: GCM) for a price of $0.90 per share. Sensing the competition, Silvercorp increased its offer to $1.30 per share. However, neither of the companies were any match for Zijin Mining, who ultimately offered Guyana $1.85 for each of its shares.

This is not the only Canadian gold mining company Zijin Mining has purchased. Back in December, the Chinese gold miner bought Continental Gold Inc for a cash payment of $1.37 billion. As the uncertainty in global markets continues, especially with the potential threat of a second wave of COVID-19 looming ahead, it will not be surprising to see more international companies take interest in Canada’s gold production.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

4 Responses

  1. simple solution. put some discipline back into your own lives and stop buying china-made products. and try to educate others in your lives to do the same. it’s only one of the few options we have

  2. Make no mistake, China is heading for global economic, political and military domination. They right now can ruin half the world’s countries economically. They’re already buying out African countries after dominating everywhere else in the world.
    How to stop them? Tell them to get out. No compensation, no remorse.

  3. Other countries like Chine will buy up Canada companies at distressed prices and then just hord that commodity at their whem. In China’s case of gold mines to support their currency or for their own needs. Until we have cleared this economic disaster from Covid-19 this should be limited to 51% Canadian stock holders ownership. The penalty for this would be removing their mining licence for 6 to 12 months until this can be rectified. They may also try to do long term contracts where they own the output or inventory, therefore contracts should be limited to 1 year at a time for certain critical commodities. This may also pretain to food supply chain where they just take the products, process it thier country and sell it back to us if we are lucky at 5 times the price. We will need 5 to 10 years to recover from Covid-19 so at the end of that period we don’t want to be owned by another country. Our goverment must act swiftly before Canada’s industries become the coladeral damage of Covid-19.

    Remember China has detained the 2 Michaels in crouded jails for over 500 days while their complaintent is sitting in her mansion with full legal representation. Chine is not our friend and they have proven it time and time again by their actions.

  4. We must stop selling Canada to the Chinese. They care not for our country or our people. Sure it employs canadian but all profits and resources go to a communist regime.

Video Articles

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

New Found Gold: The Strategic Maritime Resources Purchase

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Mariner Completes Acquisition, Changes Name To Exploits Discovery

Mariner Resources (CSE: RNR) has completed the previously announced acquisition of Exploits Gold Corp as...

Friday, September 18, 2020, 09:28:06 AM

Death Of A Dynasty? Collier Resignation May Be The Beginning Of Northern Dynasty’s Pebble Project Hitting The Rocks

This past Wednesday’s resignation of Tom Collier, the now former CEO of Pebble Partnership, a...

Sunday, September 27, 2020, 09:00:00 AM

Echelon Initiates Coverage On Freeman Gold With $1.10 Price Target

Yesterday, Echelon Partners initiated coverage on Freeman Gold Corp (CSE: FMAN) with a C$1.10 12-month...

Wednesday, December 2, 2020, 03:31:00 PM

Central Banks Buy Record Amount Of Gold In Q3

Central Banks bought more gold than ever last quarter, according to the World Gold Council’s...

Wednesday, November 2, 2022, 04:32:00 PM

GMV Minerals Receives Permits For Mexican Hat Drill Program

GMV Minerals (TSXV: GMV) this morning announced that it has received the go-ahead for its...

Tuesday, June 15, 2021, 09:01:22 AM