China's Shandong Gold Group offers to buy Jaguar Mining for $785 million

China's state-owned Shandong Gold Group Co has offered to acquire Brazil-focused gold miner Jaguar Mining Inc, for $785 million, Bloomberg yesterday reported, citing two people familiar with the deal.

Shandong Gold, the country's second-largest gold producer by market value, has offered $9.30 for each Jaguar share, a premium of 73 per cent to Jaguar's closing price of $5.39 on 15 November.

The company has 84.4 million shares issued, according to data compiled by Bloomberg.

Concord, New Hampshire- based Jaguar yesterday said in a statement that it has received ''proposals over the past few weeks'' and has hired financial and legal advisors to explore alternatives, but warned the process may not end in a sale.

Brazil focused Jaguar has operations in a greenstone belt in the state of Minas Gerais and is currently developing the Gurupi Project in the state of Maranhão. The gold producer is actively exploring and developing additional mineral resources at its approximate 256,300-hectare land base in Brazil.

The Toronto and New York-listed company has two operating gold mines, Turmalina and Paciencia, while it's third Caete mine is set to begin production shortly. It has completed pre-feasibility study at its fourth project Gurupi, which covers an area of 293,000 acres and requires huge capital infusion to develop.