Chinese gold retailer to buy US oil operator

Goldleaf Jewelry Co, a Chinese jeweler with gold mining investments, plans to acquire US oil and gas operator ERG Resources for at least $665 million, the company said on Monday in a statement to the Shenzhen stock exchange.

Goldleaf Jewelry will raise 5.7 billion yuan ($940 million) at most through a private share placement to fund the purchase and supplement liquidity, the statement said.

It will hold 95 percent of ERG Resources after the purchase.

ERG Resources, a Texas-based company, is reported to have held proven reserves of 177 million barrels at the end of 2012, according to a research report quoted in the statement.

Shares of Goldleaf resumed trading on Monday and rose by the daily limit of 10 percent to 13.77 yuan.