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Zijin Mining To Acquire Continental Gold For C$1.4 Billion Cash - Quick Facts

China's Zijin Mining Group Co., Ltd. agreed Monday to acquire all of the outstanding shares of Canada's Continental Gold Inc. at a price of C$5.50 per share in cash and all outstanding securities convertible into such common shares will also be acquired on the same basis.

The total equity value pursuant to the transaction is approximately C$1.4 billion on a fully diluted basis. The Offer Price represents a premium of 29% over Continental's 20-day volume-weighted average price as at November 29, 2019 on the Toronto Stock Exchange.

Newmont Goldcorp Corp. and directors and officers of Continental collectively holding approximately 21.5% of the outstanding Continental common shares have entered into voting support agreements to support the transaction.

The transaction has been unanimously approved by the board of directors of Continental following the unanimous recommendation of a special committee of independent directors of Continental.

The transaction is subject to approval by Continental shareholders, the receipt of certain regulatory, court and stock exchange approvals and other closing conditions customary in transactions of this nature.

Zijin would be entitled to a US$35 million termination fee and Continental would be entitled to a US$35 million reverse termination fee or may require Zijin to purchase US$35 million of Continental shares at the offer price.

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