(Yicai Global) March 14 -- Zijin Mining Group has taken over Canadian miner Nevsun Resources to ensure its supplies of raw materials for China's booming new energy vehicle sector.
Zijin purchased 23.2 million shares of Nevsun to hold the total of 310 million of them, the Fujian province-based firm said in a statement yesterday.
Nevsun accepted Zijin's acquisition offer last September which involved a price of CAD6 (USD4.5) per share, amounting to a total of CAD1.9 billion (USD1.4 billion). The equity price [Amex:NSU] was CAD4.4 on its last trading day March 7.
The Vancouver-based firm's core asset is the Timok copper-gold project in eastern Serbia. Zijin is eyeing the resource-abundant area to tap the growing demand from China's NEV sector. Last August, it acquired a majority stake in the eastern European nation's largest copper complex RTB Bor.
Zijin's stock price [SHA:601899] fell 1.4 percent to CNY3.51 (50 US cents) by lunch.
Founded in 2000, Zijin explores and produces gold and other non-ferrous materials such as zinc and lead.
Editor: Emmi Laine