Verny Capital Sells RG Gold to China’s Zijin Mining Group

Verny Capital Group has finalized a deal to sell RG Gold, a major Kazakhstani gold mining enterprise it has managed since 2014. Over the past decade, the company transformed from a small operation into a national industry leader, with extensive investment in infrastructure, modern technology, and exploration, Orda.kz reports.

Since 2018, RG Gold has partnered with U.S.-based Resource Capital Funds (RCF) to expand production, improve safety standards, and cut costs. As a result, the company’s resource base has tripled to 7.6 million ounces under the JORC standard.

The buyer is Zijin Gold International, a subsidiary of the Chinese mining giant Zijin Mining Group, which operates in 17 countries and has a market valuation of roughly $70 billion.

The company plans to implement international best practices in Kazakhstan and contribute to job creation and economic development.

JP Morgan Securities plc, BMO Capital Markets, and law firm Herbert Smith Freehills acted as advisers to Verny Capital and RCF.

We turned a modest production facility into one of Kazakhstan’s top gold miners. A decade later, we’re handing it over to a global leader. This fits our investment model —developing assets and exiting under favorable conditions. Now we’re seeking our next project in Kazakhstan, said Aidan Akanov, CEO of Verny Capital.

In 2022, RG Gold launched a $424 million gold processing plant, significantly boosting output. RCF’s Martin Valdez noted that this was their first investment in Kazakhstan and praised the country’s potential as a reliable partner for international investors.

RG Gold currently employs around 1,200 people, ranks among Kazakhstan’s top taxpayers, and supports local infrastructure and social programs.
 
Original Author: Maria Kravtsova