Chinese investors refuse to buy GV Gold company with assets in Yakutia
The presumptive reason is the parties split-up about the contract value
Yakutia 24 TV channel: Fosun Chinese investment company and the other investors refuse to buy GV Gold mining company (“Highest” deposit), operating in Irkutsk and Yakutia regions.
The Chinese investors plan to withdraw petition filed to Federal Anti-monopoly Service in July 2019. Herewith, they do not comment on the situation. According to the company, they filed documents and are still negotiating.
According to RBC, GV Gold takes the 8th place in Russia on gold development. Its income in 2018 was $361, the profit was $80.
The contract went wrong since given the increase of gold price, evaluation of the seller and buyer greatly deviated. Besides, weak financial indicators of GV Gold were another reason of the deal collapse. In nine months of 2019, it reduced production by 13%.