BRICS member China is entering Western territory and buying gold exploration companies with hard cash worth millions. China’s Yintai Gold firm struck a sale deal with Canada’s gold exploration company Osino for CAD 368 million, which is equivalent to $272 million. China will completely buy the Canadian gold exploration firm by paying hard cash worth $272.53 million.
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Before selling the company to China’s Yintai Gold, Osino will end its CAD 287 million deal with Canadian gold miner Dundee Precious Metals. The talks began in December last year between China’s Yintai and Canada’s Osino. The Chinese firm Yintai will also pay a $10 million termination fee for the deal. The development shows that BRICS country China is acquiring promising companies in the West like it did in Africa and other developing countries.
BRICS: After Buying Companies in Africa, China Eyes Canada’s Gold Firms
BRICS country China has acquired or outright purchased several companies in developing nations across Africa. The Communist nation has also spread its wings across Pakistan and Sri Lanka and controls a large section of companies. In addition, China provides loans to developing nations and ends up controlling their ports when they fail to repay.
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The developing countries in Africa are now at the mercy of China as the Communist nation controls a portion of their economy. The BRICS leader China could be eyeing similar tactics in Canada but might find it hard to get a footing. Canada is a developed and rich country and will not sell out its industries completely to China.
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“Whilst we were appreciative of the previous offer from DPM, the all-cash offer from Yintai represents a significant premium to the DPM offer price, thus is clearly a superior proposal, and is an excellent outcome for Osino’s shareholders,” Osino CEO Heye Daun said in a statement.