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Shandong Gold Mining Co, one of China's biggest gold producers, plans to buy Ghana-focused miner Cardinal Resources for around $221 million in cash.

The deal is part of a flurry by Chinese gold firms after spot prices for the precious metal hit a multi-year high at $1,764.55 an ounce in May, propelled by recession fears and China-US tensions amid the novel coronavirus pandemic.

Shandong Gold, which in April agreed to spend $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 A$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 of A$12 million, according to the filing.

Cardinal did not immediately respond to a request for comment.

Its website said it is focused on the Namdini gold deposit in Ghana, which has 5.1 million ounces of proved and probable ore reserves, and it has other exploration projects in the country.

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