Looks like more Chinese investors have Cloncury in their sights ................
26 June 2015 ASX: AOH, FSE: A2O
MAJOR CHINESE CONSTRUCTION GROUP TO CONTRIBUTE US$214 MILLION TO CLONCURRY PROJECT
• Framework Agreement signed between Altona and SRIG • SRIG to contribute US$214 million cash to the Cloncurry Project • Altona to contribute the project and US$38 million cash • Cloncurry Project funded to production through joint-venture • SRIG to hold 60% of joint-venture Altona to hold 40% • SRIG to pay US$2 million deposit
Overview
Altona Mining Limited (“Altona” or “The Company”) is pleased to announce it has concluded a binding Framework Agreement with Sichuan Railway Investment Group (“SRIG”). The agreement is subject to certain conditions and is described more fully in the Appendix. The parties have agreed to establish an incorporated joint venture holding Altona’s Cloncurry Project located in north-west Queensland, with SRIG to contribute cash of US$214.46 million and have a 60% interest in the joint venture. Altona will retain a 40% interest in the joint venture and is to contribute the Cloncurry Project and cash of US$38 million. The transaction values the Cloncurry Project on a precash contribution basis at US$105 million.
Altona can meet its immediate obligations under the agreement from its existing A$47 million of cash resources.
The Cloncurry Project offers a large resource of 287 million tonnes at 0.6% copper, 0.04g/t gold for 1.65 million tonnes contained copper and 0.4 million ounces gold and is close to infrastructure.
The joint venture will seek to develop a mine at Little Eva which is situated within the Cloncurry Project. A Definitive Feasibility Study announced by Altona on 13 March 2014 for the Little Eva development anticipates the construction of a 7 million tonne per annum open-pit mine and flotation plant capable of producing 39,000 tonnes per annum copper and 17,000 ounces gold over an initial mine life of 11 years.
Source : AOH asx announcement 26/06/15
SMD Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
................
