Shandong Gold Group, the parent company of Shandong Gold Mining (600547.SH), has made an offer to acquire Brazilian gold producer Jaguar Mining (JAG.NYSE, JAG.TSE) for US$1 billion in cash, Reuters reported, citing two sources close to the matter. The offer comes out to US$9.3 per share, a 73% premium on Jaguar’s closing price in New York on Tuesday. If it goes through, the deal would be one of the biggest overseas acquisitions made by a Chinese gold miner. State-owned Shandong Gold is one of China’s top three gold miners, producing 19.41 metric tons, while Jaguar is one of Brazil’s fastest growing gold miners, with operations in the state of Minas Gerais. A traditional safe-haven for investors, gold hit an all-time high price of US$1,920.30 in September.
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