PCF signs gold JV with Chinese firm

PCF Capital has struck a joint venture deal with Zhaojin International Mining, amid plans by the Hong Kong-based company to invest in the Australian gold sector.

The Golden Gateway JV is a 50-50 deal under which PCF will help Zhaojin identify deals in the country to complement its 670,000-ounce Chinese production.

Zhaojin has a market cap of around $5 billion and is one of China’s largest gold producers, according to PCF.

PCF managing director Liam Twigger said Golden Gateway would combine PCF’s deep industry knowledge with China’s willingness to successfully invest in Australia and expand the country’s overseas mining interests in tier one jurisdictions.

“There is global demand for profitable gold mining operations, which are less exposed to the fluctuations in worldwide economic growth and trade relations,” he said.

“At PCF, we have noticed an increased appetite from Chinese mining companies to invest in the right opportunities in Australia.

“However, there has been some hesitancy to transact because of a perceived lack by the prospective buyer of local market insight and the ability to carry out effective due diligence.

“Golden Gateway is structured as a conduit to identify and offer up investment opportunities, backed by locally based technical and financial due diligence, to willing Chinese investors.”

Mines and Petroleum Minister Bill Johnston congratulated Zhaojin and PCF Capital on the significant partnership.

"Western Australia's innovative and globally competitive gold industry is a key component of our reputation as a destination of choice for resource investment," he said.

"It's also never been a better time to invest with the Australian gold price hitting record levels this month."

The official signing of the JV occurred at the Westin Hotel today and was attended by Mr Twigger, Zhaojin Mining chairman Weng Zhanbin, China’s Perth Consulate Consul General Dong Zhihua, and Mr Johnston.