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Electronics engineering firm Dragon Group buys miner Coeur Gold Armenia for S$500m
DRAGON Group International (DGI), an electronics engineering company, announced it will fully acquire precious metal mining company Coeur Gold Armenia (CGA) for around S$500 million, as part of the company's plan to diversify its business.
The deal comprises a S$200,000 cash deposit and 2.499 billion shares at 20 Singapore cents a share, Dragon Group said in a filing with the Singapore Exchange on Thursday.
"With the expected demand of gold to increase in the future, coupled with the reality that, based on known mineable reserves, global gold production may be at its peak, this acquisition opens a gateway for DGI to enter a market which could see very favourable circumstances in the medium term," said Michael Loh Soon Gnee, executive chairman and CEO of Dragon Group.
George Richmond, CGA's chief executive said: "This is an attractive offer from DGI, given the valuable underlying assets and high growth potential businesses of DGI."
CGA is based in Seychelles, Africa and its business is gold, silver and copper mining.
As at 2.51pm, Dragon Group's counter was trading at 5.4 Singapore cents, up 31.7 per cent.