Ivanhoe Mines (IVN.TO) is selling its controlling stake in Vancouver's Jinshan Gold Mines (JIN.TO) to Chinese gold mining heavyweight China National Gold Group Corp.
Ivanhoe, based in Vancouver, will receive $218 million for its 42% interest in Jinshan, which began producing gold in China's Inner Mongolia region in July 2007.
A substantial portion of the sale, said Ivanhoe, will be used to advance its gold and copper exploration ventures across China.
State-owned China National Gold, China's largest gold producer, will appoint four new members to the Jinshan board.
China National accounts for approximately 20% of the country's gold production.
The transaction, subject to Chinese government regulatory approvals and Canadian regulatory filings, is scheduled to close on May 10.
Ivanhoe's share price range during the past week: between $10.56 and $11.21; 52-week high: $18.00; 52-week low: $7.80.