Shares of GT GOLD (HKEX: 08299) surged more than 7% in the afternoon session. At the time of writing, the stock was up 5.45% to HK$0.29, with a turnover of HK$15.4 million.

The move follows a recent company announcement providing further details and confirmation of its planned acquisition of the Ningshan gold mine assets. The mine's measured and indicated gold resources amount to 699,000 ounces, with an acquisition cost of approximately US$114 per ounce of resource.

The fair value of 100% of the target group's equity is about HK$1.13 billion. GT GOLD will secure an 80% interest for a total consideration of HK$585 million, representing a discount of roughly 35%.

Acquisition Nears Final Stage

The handover of the Ningshan gold mine is now in its final countdown and is expected to be reflected in the company's financials in the near term. The announcement specifies that the mine and its processing plants are anticipated to commence trial production next month.

Significant Production Upside Expected

The two processing plants have a combined design capacity of 1,500 tonnes per day, with a potential capacity of up to 2,000 tonnes per day. Once fully operational, they are projected to significantly boost GT GOLD's gold production and overall profitability.

Furthermore, the mining license for the Ningshan gold mine was successfully renewed this past February and is valid until February 13, 2032.