Shandong Gold offers USD1bn for Jaguar Mining

China's Shandong Gold Group has made a USD1 Billion offer to acquire Brazil's Jaguar Mining Inc.

Shandong Gold is offering USD9.30 per share in cash to purchase Jaguar Mining Inc. .

Following the news Jaguar shares climbed more than 47% to USD7.94 on the New York Stock Exchange..

The deal would help Jaguar secure financing for its Gurupi project located in the state of Maranhão, Brazil, which has been running into funding difficulties over the past year. The project is expected to start operations in 2014.

According to Jaguar Mining’s website:

The feasibility study confirmed an estimated 69,887,500 tons of indicated mineral resources at an average grade of 1.12 grams per ton totaling 2,518,170 ounces of gold and 18,676,700 tons of inferred mineral resources at an average grade of 1.03 grams per ton totaling 616,630 ounces of gold. Probable gold reserves, which are included in the reported mineral resource estimate, are estimated at 63,756,700 tons at an average grade of 1.14 grams per ton totaling 2,327,930 ounces. The average stripping ratio is estimated at 3.94.