Zijin Mining's stock price plummeted 7.07% during Monday's intraday trading session following the announcement of a major acquisition plan.

The miner revealed plans to significantly increase its stake in Chifeng Jilong Gold Mining through a series of transactions totaling approximately 18.26 billion yuan. The company will acquire 242 million A shares from Chifeng Gold's largest shareholder for 10 billion yuan and purchase an additional 311 million H shares directly from the company for 9.39 billion yuan.

This investment will raise Zijin Mining's ownership in Chifeng Gold to 25.85% of the business, granting the company controlling power and leading to consolidation of Chifeng Gold's financial statements. The move is intended to strengthen Zijin Mining's gold resource integration capabilities, but the substantial capital outlay appears to have concerned investors, contributing to the sharp price decline.