Tongguan Gold Group (HKG:0340) unit Grand Gallant Investments agreed to purchase Wise Trend Investment from Jumbo China for up to HK$400 million, subject to shareholder approval, a March 7 bourse filing said.

The target, through Subei Mongolian Autonomous County Yixin Mining Development, holds 70% economic benefits of the licences authorizing Northeast Mining to conduct exploration activities at the beidong and 460 gold mines in Gansu Province, China.

The consideration for the deal will be settled through the issue of a maximum of 800 million shares by the gold miner at HK$0.5 apiece.