Mei Ri Jing Ji Xin Wen·2025-12-15 13:48Core Viewpoint - Luoyang Molybdenum Co., Ltd. is acquiring 100% equity of Leagold LatAm Holdings B.V. and Luna Gold Corp. for $1.015 billion, aiming to enhance its gold mining portfolio in South America [1][2]. Group 1: Acquisition Details - The acquisition involves two companies: Luna Gold Corp. (LGC) holds 100% equity of Aurizona Gold Mine, while Leagold LatAm Holdings B.V. (LatAm) holds 100% equity of RDM Gold Mine and Bahia Complex [2][3]. - The total net assets of LGC and LatAm are approximately 3.814 billion yuan as of September 30, 2025, indicating a significant premium over the acquisition price [1][2]. - The purchase price consists of a base amount of $900 million, with an additional contingent payment of up to $115 million based on sales performance within one year post-acquisition [2][3]. Group 2: Mining Operations and Production - Aurizona Gold Mine is located in Maranhão State, Brazil, with an expected gold production of 70,000 to 90,000 ounces in 2025, and potential peak production exceeding 160,000 ounces [3][4]. - RDM Gold Mine is projected to produce 50,000 to 60,000 ounces of gold in 2025, while the Bahia Complex is expected to yield 125,000 to 145,000 ounces [4]. - The Fazenda Gold Mine has been operational for nearly 40 years, with cumulative gold production exceeding 3.3 million ounces, and its lifespan has been extended to 2033 based on updated geological data [4][5]. Group 3: Strategic Implications - This acquisition aligns with the company's strategy to enhance its resource reserves, focusing on copper and gold [5]. - Following the completion of this transaction, the acquired assets will be consolidated into the company's financial statements, increasing its annual gold production to an estimated 8 tons [5].