Zijin to buy owner of gold project in Serbia

China's Zijin Mining Group plans to raise up to 8 billion yuan ($1.16 billion/1.0 billion euro) for the acquisition of metals company Nevsun Resources, which runs the Timok copper-gold project in Serbia.

Zijin plans to issue up to 3.4 billion Class A shares to finance the purchase of 100% of the capital of Nevsun, for a total of 9.36 billion yuan, the Chinese company said in a filing with the Hong Kong Stock Exchange on Wednesday.

Last week, Nevsun said Zijin has been successful in the offer to purchase all of its 276,820,575 issued and outstanding common shares for 6.0 Canadian dollars ($4.4/3.9 euro) apiece. The shares represent 89.37% of the total issued and outstanding Nevsun shares on a fully diluted basis.

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In addition, pursuant to applicable Canadian securities laws, Zijin has extended the period shareholders of Nevsun have to tender their shares under the offer by 10 days to January 7.

In September, Zijin offered $1.41 billion (1.24 billion euro) to acquire Nevsun, the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia.