Shandong Gold Mining (Linglong), a subsidiary of Shandong Gold Mining (600547), intends to acquire the exploration rights to the Lingshangou gold mine in Shandong province from Shandong Gold Group for a maximum of 133.9 million yuan, reports yicai.com, citing a company filing. Shandong Gold Group has fixed the initial bid price of the exploration rights at 103 million yuan. Should the subsidiary successfully acquire the exploration rights, its reserves of gold will increase by 1,785.5 kilograms. According to the report, as the exploration area of the Lingshangou mine is near to the subsidiary's current mine, the acquisition of the exploration rights will help the company to make use of the existing mineral separation capabilities, lowering exploration cost and improving its profitability. The subsidiary has current metal production capacity of 520 tons per day in its Lingshangou mine. Upon full production, the mine is expected to produce 180,000 tons of metals per year.

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