Photo: VCG

Fujian-based Zijin Mining Group has agreed to buy Canadian miner Continental Gold for C$1.3 billion ($1 billion) in cash at a price of C$5.50 per share, in a move to expand the group's gold reserves and boost its cash flow, according to a statement released by Zijin on Tuesday. 

The acquisition will give Zijin Mining access to Continental's Buritica gold project in Colombia and increase the share of gold in its business deployment by boosting its gold reserves to more than 2,000 tons, with output growing by nearly 20 percent, the statement said.

The Buritica gold project is expected to go into operation in early 2020.