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Chinese mining operator China Kingstone Mining (1380) has acquired a controlling stake in a gold mining project in southern Chile, the Chinese firm announced, allowing it to access a 400-hectare concession in one of the world’s premier mining jurisdictions and marking its entry into the precious metals business.
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The project, located in Pumillahue, boasts an in-situ gold figure of about 2.5 tons (over 72,000 troy ounces), equivalent to US$300 million (HK$ 2.34 billion) at current gold prices, with further upside potential as exploration advances and gold prices rise, at a time when major banks target gold at US$5,000 to more than US$6,000 per ounce, well above current levels.
Bullion now trades at roughly double its level two years ago, positioning CKM in a prime commodity market at a pivotal time.
Under the deal, CKM has the right to expand across the surrounding concessions in the district, allowing the investment holding company to enlarge its footprint as the project progresses.
Chairman and chief executive Chin Then Hin has taken control of the board and will spearhead the project, bringing the company forward in its international mining aspirations.
Gold found from drilling.
Daniel Esteban from China Kingstone's Chile Engineering and Geology team.
The deal marks the company’s entry into precious metals within a broader push into international mining opportunities.
The site in Pumillahue, meaning “place of the gold mine” in the indigenous tongue, sits in the Madre de Dios district of southern Chile – named “Mother of God” by the Spanish for its riches. The gold in the area has long been prized for its exceptional 22–24 karat purity, once making Valdivia the wealthiest city in Chile during the colonial period.
CKM stated that it has confirmed gold-bearing geology and historic reports within the area through commissioning a field visit and economic evaluation from GMY Consulting, a Canadian firm, last September, followed by a NI 43-101 technical report from Nebu Consulting in early 2026.
The mining operator announced that it will acquire 85 percent of equity in Kingstone Global and a debt assignment of US$800,000 owed by the Chilean company for a consideration of US$3.2 million. Of this, an earnest money of US$1 million will be paid toward consideration upon completion.
After completion, Kingstone Global will be 85 percent owned by CKM and 15 percent owned by the vendor.
Under the rule of pro-mining Chilean President Jose Antonio Kast since earlier this year, the country has favored foreign investment, expediting timelines for granting permits and driving an aggressive pro-investment agenda for the globally recognized tier-1 mining jurisdiction.
Bullion currently trades at roughly double its level two years ago, as central-bank buying and persistent geopolitical and fiscal uncertainty have driven structural demand for the metal, positioning CKM in a prime commodity market at a pivotal time.
Chin brings to the company around two decades of experience commanding major capital and infrastructure plays across global mining, including international greenfield mining projects, as former head of China at Anglo American, director at BTG Pactual, and senior vice president and head of Asia Pacific at African Minerals.
