By P.R. Venkat
Zhaojin Mining Industry has made a strategic move by offering to acquire Australian miner Tietto Minerals for AUD 629 million (US$398.1 million). This acquisition is expected to further boost Zhaojin’s overseas business and enhance the overall profitability of its operations.
As part of this deal, Zhaojin Mining Industry has proposed to pay AUD 0.58 per share for Tietto Minerals, which represents a significant 36% premium over the last traded price of AUD 0.425 per share. This generous offer demonstrates Zhaojin’s commitment to the acquisition.
Zhaojin intends to fund the acquisition using its internal resources. With a current stake of 7.02% in Tietto, Zhaojin is poised to take a controlling interest in the Australian-listed entity.
Upon completing this transaction, Zhaojin plans to actively support and accelerate the growth of Tietto Minerals. This support will include focusing on the development of the Abujar gold mine and ongoing exploration activities in Cote d’Ivoire, Liberia, and other regions. The acquisition aligns with Zhaojin’s broader strategy to expand its reach in the gold production and smelting sectors.