London Mining is pleased to announce that it has signed a letter of intent with Wits Basin Precious Minerals, Inc. ("Wits Basin") which may result in London Mining becoming a 50/50 joint venture partner for Wits Basin's iron ore project in Ma Anshan in the People's Republic of China. The potential transaction remains subject to due diligence and finalisation of definitive legal documents.
Under the preliminary terms that have been agreed with Wits Basin, London Mining would acquire a 50% interest in the proposed joint venture vehicle for a total consideration of US$45 million. The joint venture vehicle currently holds rights to acquire three Chinese mining companies, Nanjing Sudan Minerals, Maanshan Zhaoyuan Mining and Xiaonanshan Mining.
London Mining has also agreed to provide up to US$1 million, in the form of a convertible loan note to be issued by Wits Basin, to cover due diligence and other transaction costs associated with the potential acquisitions.
No comments:
Post a Comment