Golden China Resources has agreed to a proposed takeover offer by Sino Gold Mining that values Golden China at Aus$80.7 million.

Following successful completion of the offer, should Sino Gold acquire all of the outstanding Golden China shares, Golden China shareholders would collectively hold an interest of about 6.5% in Sino Gold.

Sino Gold believes that the proposed acquisition provides an attractive addition to its asset base and enhances its growth profile as Golden China's Beyinhar project is advanced to development status.

Sino Gold chief executive officer Jake Klein says: "We have previously indicated that we intend to acquire advanced exploration assets that have the potential to be developed once our second mine, White Mountain, starts commercial production in early 2009.

"Golden China's assets fit perfectly with this strategy and enable Sino Gold to focus on a potential third mine development. Importantly, Golden China's key assets are all within the three areas in which Sino Gold already has significant activity and capacity.