(REUTERS) -- A subsidiary of Shanghai Construction Group Co. Ltd. will acquire gold mining assets in Eritrea, according to a company announcement.
Shanghai Construction will acquire a 60 percent equity stake in Zara Mining Share Co. for $80 million, the statement said, citing a framework agreement signed by the two companies.
The deal also gives Shanghai Construction the option to acquire additional mining rights from Zara for areas where gold reserves have not yet been confirmed.
Shanghai Construction will conduct the acquisition through wholly-owned subsidiary China Shanghai (Group) Corporation for Foreign Economic & Technological Cooperation (SEFCO Group).
SEFCO is involved in various infrastructure projects overseas, including Vietnam, where it is building a 40,000-seat stadium in the capital Hanoi, a coal-fired thermal power plant, and a conference center, according to its website.
The company is also building a liquified petroleum gas pipeline and terminal project in Pakistan and has worked on some of Shanghai's highest-profile infrastructure projects, including the Shanghai World Financial Center, the country's tallest skyscraper.