Source: WSJ – China’s Gold Appetite Remains Strong
China Inc. is continuing to pursue gold assets across the globe, ignoring volatility in the price of the yellow metal.
The latest deal is an offer from Qixing Group Company Ltd.’s Shenzhen-listed subsidiary Shandong Qixing Iron Co. Ltd , to pay a minimum of US$140 million, pending due diligence among other conditions, for the assets of Australia-listed Stonewall Resources Ltd.
Stonewall’s key assets are stakes in two South African projects and an Australian one. The largest is the TGME project, located in the Sabie-Pilgrim’s Rest Goldfield, a district that’s produced an estimated 6 million ounces of gold to date.
Shandong province-based Qixing calls itself a diversified industrial company with exposure to operations in the aluminium, energy, financial services, tourism and mining industries across 24 countries in Asia, Africa and Europe.
“The company is seeking to increase its international footprint and expand into the resources sector as part of its internationalization and diversification strategy,” Stonewall said of Qixing.