Australia Allows Chinese Purchase of Gold Miner While Canada Says ‘No’
China’s second-largest state-owned gold mining company Shandong Gold has won a bidding war to gain control of Australian gold miner Cardinal Resources.
This comes after Five Eyes’ partner Canada blocked Shandong from acquiring a local mine in the strategically important Arctic Circle.
Over a seven-month period, the state-owned Shandong Gold vied mainly with Russian firm Nordgold for control of Perth-based mining company Cardinal.
In June, Cardinal was valued at 46 cents per share. However, by last week Shandong finalised a deal to buy the company for over AU$580 million at $1.075 per share, providing a substantial windfall to shareholders.