CMOC Unit to Acquire Lumina Gold; Shares Surge 10%

MT Newswires Live
22 Apr

CMOC's (HKG:3993, SHA:603993) unit CMOC Singapore agreed to acquire Canada-based mining firm Lumina Gold for CA$581 million on a fully diluted basis, a Monday press filing by Lumina stated.

The miner will buy the shares at CA$1.27 apiece in an all-cash transaction subject to all necessary regulatory and shareholder approvals.

As part of the acquisition, CMOC will take over the Cangrejos gold project in Ecuador's El Oro province, which Lumina Gold has been developing for 10 years.

CMOC has concurrently agreed to subscribe for $20 million of convertible bonds issued by Lumina Gold. The bonds carry an interest rate of 6% per annum and will fall due April 21, 2026.

Lumina plans to use proceeds from the issue of the bonds, which are convertible into Lumina Shares at CA$1 apiece, to fund expenditures related to the contract for the sale.

The company's Hong Kong-listed shares closed 10% higher, while its Shanghai-listed shares were up 4% at market close.

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