Tuesday, 15th November 2005 (2715 views)

Golden China Resources and Michelago are to merge, creating the world's largest foreign gold producer in China, reports Forbes.

Following the merger of the current top player Michelago and Canada-based Golden China Resources, the companies will trade under the title Golden China Resources.

They will pool their resources in exploration, project development, operations and merchant banking.

"The transaction will create a powerful, integrated foreign participant that can continue to take advantage of the expanding opportunities in the Chinese gold industry," commented Doug Betts, chairman and chief executive of Golden China Resources.

Under the agreement, the newly formed company will continue to develop Michelago's Xinjiang property and Golden China Resources' Nibao and Wangmo Carlin properties in China, in addition to its Inner Mongolian properties Beyinhar and Chifeng.

China has around 1,200 gold mines, but the majority of them produce little gold, as domestic miners do not possess the technology to extract the gold.

 

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