SHANGHAI: Zhongjin Gold Corp yesterday completely acquired the stakes held by its parent company, China National Gold Group Corp (CNGGC), in Hebei Jinchangyu Gold Mine and Henan Qinling Gold Mine for a combined 255.43 million yuan.

This is the first step in its plan to incorporate seven gold mines from CNGGC within the year. After the deal, Zhongjin Gold will become China's second largest company by gold reserves. Information made public by the company showed that the transactions, of Qinling and Jinchangyu, were made at 158.49 million yuan and 96.94 million yuan, respectively.

The Qinling mine has gold reserves of 5.165 metric tons, while the one in Jinchangyu holds 8.555 metric tons, according to Yang Hongjie, an industry analyst with Haitong Securities.