Shares of Chengtun Mining Group climbed after the Chinese energy metal trading and mining firm announced plans to invest CAD261 million (US$190 million) to fully acquire Canadian gold explorer Loncor Gold, taking over the Adumbi Gold Mine in the Democratic Republic of the Congo to accelerate project development and commissioning.

Chengtun’s shares [SHA: 600711] rose 5.9 percent to 11.03 yuan (US$1.58) as of the lunch break in Shanghai today. The stock has surged 134 percent so far this year.

The Xiamen-based company said late yesterday that it will establish a Canadian subsidiary to offer CAD1.38 (98 US cents) per share in cash to acquire all issued and outstanding common and diluted shares of Loncor. Following the transaction, Chengtun plans to privatize Loncor, it added.