China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Shares in Jaguar Mining (NYSE:JAG) surged 46% today on news that a Chinese gold producer is bidding $1 billion for the Brazil-focused company.
The Globe and Mail reports that Shandong Gold is offering $9.30 per share in cash, which is a 73% premium to Jaguar’s closing price Tuesday on the NYSE.
The shares were changing hands at around $7.89 Wednesday afternoon in New York.
Jaguar Mining acknowledged Wednesday it has received offers over the last few weeks and is exploring alternatives to maximize shareholder value. However, it warned that there is no assurance the Shandong Gold offer will result in a deal.
Jaguar Mining has four producing gold mines in Brazil, located in a greenstone belt of the state of Minas Gerais. The company has also completed a feasibility study on its Gurupi project in Maranhão state. The study confirmed an estimated 69.8 million tonnes of indicated resources at an average grade of 1.12 grams per tonne containing 2.5 million ounces of gold, and 18.6 million tonnes of inferred resources at an average grade of 1.03 grams per tonne containing 616,630 ounces of gold.
Comments
Manrique Johnn
good for my brazilian friends, too much gold and too much money, nice business!