Zijin Mining Group has announced a deal to acquire the Raygorodok Gold Mine in Kazakhstan for US$1.2B. This deal will deliver the rights of RG Gold LLP and RG Processing LLP, the Kazakhstan-based mining companies that currently own Raygorodok to Zijin’s subsidiary groups, Zijin Gold International and Jinha Mining.
Zijin Mining gave a statement on the acquisition, noting, “If the transaction of acquisition of the Raygorodok gold mine can be completed smoothly, it can significantly enhance the asset scale, profit level and global industry position of Zijin Gold International, and promote the listing and offering of Zijin Gold International in the international capital market.”
The project was developed by Verny Capital in partnership with Resource Capital Funds (RCF). Verny Capital has managed RG Gold since 2014, and has invested significantly over the years in modernizing the project, commissioning a US$424M processing plant in 2022 and tripling the resource base to 7.6Moz.
Aidan Akanov, CEO of Verny Capital commented on the deal stating, “We succeeded in implementing a unique project – transforming a small-scale operation into one of the country’s leading gold producers. Now, ten years later, we are planning to hand it over to a major international player with an impressive track record in managing mining assets.”
Similarly, Martin Valdes, Partner at RCF comment, “Our investment in RG Gold was our first project in Kazakhstan, and we are proud to have contributed to the successful growth of one of the country’s leading production facilities. We also welcome the entry of a major international company – Zijin Mining Group – into the country’s market. It is a strong testament to Kazakhstan’s long-term investment appeal.”
