CGMR Pushes Forward Mining Acquisition In China

China Global Mining Resources (BVI) Limited, has entered into and funded two escrow arrangements in China in connection with the acquisition of Xiaonanshan Mining Company.

CGMR is a 50/50 joint venture entity formed by Wits Basin and London Mining Plc for the purposes of acquiring three iron ore mining companies in China: Xiaonanshan Mining, Nanjing Sudan Mining Company, and Maanshan Zhaoyuan Mining Company.

The escrow accounts associated with the Xiaonanshan Mining acquisition are in the aggregate amount of USD7.3 million. They were funded by CGMR through a loan received from London Mining that will convert into London Mining's subscription for 50 percent of CGMR's equity upon completion of the acquisitions of the PRC mining properties. CGMR's entry into, and funding of, escrow represents a significant step towards CGMR's completion of the acquisition of Xiaonanshan Mining.

The completion of the acquisitions of the China properties remains subject to certain closing conditions, including the receipt of certain business licenses and permits relating to the transfer and the operation of the mining properties.

You May Also Like

Leave a Reply

Your email address will not be published.