Shandong Gold Mining Co, one of China’s biggest gold producers, said on Thursday it would buy Ghana-focused miner Cardinal Resources Ltd for around A$321 million ($221 million) in cash.

The deal continues a recent M&A flurry by Chinese gold firms after spot prices for the precious metal hit their highest in more than 7-1/2 years at $1,764.55 an ounce last month, propelled by recession fears and Sino-U.S. tensions amid the novel coronavirus outbreak.

Shandong Gold, which in April agreed to splash out C$230 million ($170 million) on Canada’s TMAC Resources, said in a filing to the Shanghai Stock Exchange it had signed an agreement with Australia-listed Cardinal to pay A$0.60 per share and would acquire all the target’s equity for AS$309 million.

The Chinese miner will also subscribe for 26 million new shares to be issued by Cardinal at a price of A$0.46 per share for a total A$12 million. Cardinal did not immediately respond to a request for comment outside of normal business hours.

Its website says it is focused on the Namdini gold deposit in Ghana, which has 5.1 million ounces of proved and probable ore reserves, and has other exploration projects in the West African country. Cardinal’s shares closed down 3.1% at A$0.47 on Thursday.

Shandong Gold, whose shareholder Barrick Gold Corp this week said it had sold off most of its 17.9% stake in the company, noted the Cardinal deal was subject to regulatory approvals, including from the Australian Foreign Investment Review Board.

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