(Reuters) - Continental Gold Inc (CNL.TO) said on Tuesday independent proxy advisory firms ISS and Glass Lewis have urged the Canadian miner’s shareholders to vote in favour of a takeover offer from China’s Zijin Mining Group Co Ltd (601899.SS) (2899.HK).
The C$1.3 billion ($1 billion) offer made by Zijin in December, is aimed to take control of Continental Gold’s flagship Buritica gold project in Colombia.
The Canadian miner’s Chief Financial Officer Paul Begin had previously told Reuters that increased security concerns in Colombia posed a risk to the deal.
The Buritica project, which is also shaping up as a key test for the future of large-scale underground mining in Colombia, has measured and indicated gold reserves of 165.47 tonnes, Zijin said.
As companies look to boost reserves and take advantage of firmer bullion prices XAU=, major gold miners Barrick Gold Corp (ABX.TO) and Newmont Corp (NEM.N) have also bulked up to boost growth and replace shrinking reserves.
Continental Gold shareholders are scheduled to vote on the deal at an upcoming special meeting on Jan. 28.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Shounak Dasgupta