The 18.26B merger drama! Zijin Mining acquires Chifeng Gold, another victory for the gold giant

(Source: Global Haoyuan Fund)

On March 23, Zijin Mining, a leading company in China’s gold mining industry, announced that it plans to obtain control of Chifeng Gold with a total consideration of approximately RMB 18.258 billion.

This signals that another well-established private gold enterprise will be brought into Zijin Mining’s business portfolio, and the pace of consolidation in the domestic gold industry will further accelerate.

Deal details: “Two-step approach” — A-share acquisition + H-share private placement

This transaction adopts a combination of “agreement-based acquisition of existing A shares plus subscription for newly issued H shares.”

•   A-share agreement transfer: Zijin Mining’s wholly owned subsidiary, Zijin Gold, will purchase 242 million A shares held by Chifeng Gold’s controlling shareholder Li Jinyang and his concerted parties at a price of RMB 41.36 per share (a premium of 1.3% over the closing price before the suspension of trading). The transaction value is approximately RMB 10.006 billion.

•   H-share directed issuance: At the same time, Zijin Gold will subscribe for 311 million H shares of Chifeng Gold issued via a directed placement at a price of HK$30.19 per share (approximately 83% of the H-share 60-day average price). The subscription amount is approximately HK$9.386 billion (equivalent to RMB 8.252 billion).

After the transaction is completed, Zijin Mining’s total shareholding will increase to approximately 572 million shares, accounting for 25.85% of Chifeng Gold’s total share capital after its share issuance. It will become its controlling shareholder and achieve financial consolidation. The original controlling shareholder, Li Jinyang, will fully exit.

Target assets and strategic intent

Chifeng Gold is a gold producer whose business covers China, Southeast Asia, and West Africa. According to its 2025 annual report, on a consolidated basis, the company has gold resource of 583 tons, and its 2025 mine gold production reaches 14.5 tons.

Regarding this acquisition, Zijin Mining said that it fully aligns with the company’s “resource-first” development strategy. By holding controlling interest in Chifeng Gold, Zijin Mining can not only quickly obtain its existing high-quality operating mines and resource reserves, but also secure a valuable H-share financing platform, which is conducive to future overseas expansion and further consolidating its leading position in the gold sector.

Conclusion

This merger and acquisition with a total value of more than RMB 18 billion not only reshapes the competitive landscape of China’s gold industry, but also reflects the strategic foresight of leading enterprises to expand against the trend amid cyclical fluctuations. After the transaction is completed, Zijin Mining’s gold resources and production will be significantly enhanced, and its leading position in the industry will be further strengthened.

A large volume of information and precise analysis—available in the Sina Finance app