Joint venture bids C$259 mln for Canada miner QGX

Jul 23 • Business, Economy, Mining • 920 Views • 3 Comments on Joint venture bids C$259 mln for Canada miner QGX

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Reuters reports that,

TORONTO, July 22 (Reuters) – Private Asian holding companies Kerry Holdings and MCS Holding are teaming up to buy Canadian-based metals explorer QGX Ltd (QGX.TO: Quote, Profile, Research) for C$259 million ($256 million), the three firms said on Tuesday.

The friendly cash offer values QGX at C$5 a share, an 11 percent premium to the miner’s closing price on Monday.

QGX’s board has unanimously recommended the offer and shareholders representing about 42 percent of the shares have agreed to tender to the bid, the company said.

QGX’s stock surged on the news, and was up 8.9 percent after the shares resumed trading following a halt. QGX was up 40 Canadian cents at C$4.90 on the Toronto Stock Exchange.

The stock has risen 48 percent since QGX announced in February it was reviewing strategic alternatives, which is generally taken to mean putting itself up for sale.

Kerry Holdings is based in Hong Kong, while MCS is based in Mongolia. They are making the offer through a joint venture called Mongolia Holdings Corp.

QGX is based in Waterdown, Ontario, but explores in Mongolia and owns gold, copper and coal assets in the country.

Mining major Barrick Gold (ABX.TO: Quote, Profile, Research) holds a 9 percent stake in the company and has agreed to tender its shares to the bid, QGX executive chairman David Anderson said. ($1=$1.01 Canadian) (Reporting by Cameron French; editing by Rob Wilson)

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3 Responses to Joint venture bids C$259 mln for Canada miner QGX

  1. Amarsanaa says:

    If I haven’t misunderstood, Kerry Holdings is HK company that is partnering with MCS long ago???

  2. rofl says:

    This is fuking huge shit

  3. Confi says:

    QGX was on the volume 5 of Asia Miner magazine this year. I think they got quite a promising deposit in Baruun Naran. I heard Mongolian group called JUST GROUP got 10% of it in 2007 even before anyone was into this QGX.

    According to the magazine, the Baruun Naran showed a net present value of US$481 million on an after-tax basis.

    Another good canadian company is Red Hill Energy or Ulaan Ovoo Energi in mongolia. They have a coal project in Ulaan Ovoo and their minin licence is transferable 30 year basis with 40 year extension option.

    Although I am not into mining myself, the game itself interests me greatly 🙂

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