First dual-listing of a mining company under the new Hong Kong listing regime for mineral resources companies
HONG KONG (December 1, 2010) – Morrison & Foerster is currently representing TSX-listed China Gold International Resources Corp. Ltd. (China Gold International) on its US$309 million initial public offering (IPO) on the Hong Kong Stock Exchange and its US$742 million acquisition of the Jiama Mine, which closes concurrently with the IPO today. The Jiama Mine is one of the largest copper-polymetallic mines in China. China Gold International is controlled by China National Gold, the largest gold producer in China. Proceeds from the offering will be used to acquire overseas gold and nonferrous metal resources, expand production capacity, and replenish working capital.
China Gold International is the first dual-listing to be completed since the Hong Kong Stock Exchange implemented the new changes to Chapter 18 of the Listing Rules in June 2010.
“As the Chinese economy continues to flourish, we have seen a significant rebound in IPO activity over the last few months and expect this trend to rise. We are delighted to be at the forefront of this trend, representing companies going to market and seeing first hand the new Chapter 18’s positive effect on listings by mineral companies. This transaction is particularly unique in that our client acquired a major mining asset in China which was completed concurrently with the IPO,” says Ven Tan, Managing Partner of Morrison & Foerster’s Hong Kong office and lead partner on the transaction.
This IPO marks a string of successful Hong Kong listings for Morrison & Foerster in 2010. Morrison & Foerster is currently advising or has advised on the following transactions this year:
The China Gold International transaction team was led by Hong Kong partner Ven Tan, with assistance from Of Counsel Gregory Wang.