Zijin Metal Company Limited and Tongguan Gold Group Limited enter into a non-legal binding term sheet
On April 8, 2025, Zijin Metal Company Limited "Zijin" and Tongguan Gold Group Limited "Tongguan" entered into a non-legal binding term sheet with one another. Zijin will provide an upfront cash payment of US$25 million once certain conditions are met. In return, Tongguan will supply with a specified amount of gold extracted from the designated mining areas of the Beidoing gold mines in Gansu, China.
Tongguan has committed to deliver gold to Zijin in the following amounts:
- 17.6 kilograms quarterly until a total of 123.2 kilograms is delivered
- 17.0 kilograms quarterly until a total of 276.2 kilograms is delivered
- 7.7 kilograms quarterly, with the final delivery being 7.2 kilograms, until a total of 422.0 kilograms is delivered
Tongguan has the option to either provide gold credits equivalent to the agreed deliveries or repay Zijin in cash based on the spot gold price in Shanghai.
Zijin, based in Longyan, China, is a large multinational mining group engaged in the global exploration and development of copper, gold, zinc and lithium, as well as engineering and technological research.
Tongguan Gold Group Limited based in Hong Kong, operates in gold mining operations.
McCarthy Tétrault advised Zijin Metal Company Limited with a team led by Joyce Lee (mining).
