Chinese State-Owned Shangdong Gold Buys Into Australian Gold Producer and Explorer – Focus Minerals (Dec 2011)

Chinese gold buying

The Australian: Chinese cash has Focus Minerals on the prowl

Notable Excerpts:

…Australian goldminer Focus Minerals’ shareholders have seized the opportunity to team up with state-owned Chinese firm Shandong Gold to gain access to funds to expand its existing mines and consider new ones.

Despite initial shareholder reluctance, more than 82 per cent of Focus Minerals’ shareholders voted to approve the sale of 51 per cent of their company to Shandong Gold for $225 million in Perth on Friday.

Focus Minerals will use the funds to expand capacity at its West Australian goldmines near Kalgoorlie and Laverton, and prospect for new gold.

Focus Minerals’ hook-up with Shandong also makes the company eligible for cheap credit from the Chinese government, at interest rates about half what companies would pay here.

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