re: chinese investment in tasmanian tungsten show
Dave a report in 'MiningNews' today may interest you Chinese partner set to fund King Island
Paul Garvey Friday, 8 September 2006
JUNIOR company King Island Scheelite could bypass all development costs at its namesake project in exchange for a 50% interest, under a non-binding letter of intent signed with Chinese tungsten manufacturer Xiamen Tungsten.
Under the terms of the letter of intent, Xiamen will earn a 50% stake in the project –on King Island off Tasmania's northern coast – by contributing 100% of the capital required to develop the project and build the mine's plant.
Each party would then contribute 50% of the mine's operating costs.
Speaking to MiningNews.net this morning, King Island chairman Ray Soper described the agreement as an important milestone for the company, with Xiamen's reputation as a leading player in the niche tungsten industry making it an ideal partner in the project.
Xiamen will provide technical support services to the project under a technical services agreement.
"Xiamen has world-leading capabilities in the tungsten development, and we hope to avail ourselves of that expertise," Soper said.
King Island is set to wrap up its final feasibility study over the project by the end of the month, after which the company expects to wrap up a legally binding heads of agreement soon after.
Soper said the company still expected to meet its scheduled development start date of early 2007.
Xiamen, which is listed on the Shanghai Stock Exchange with a market capitalisation of around $US750 million ($A990 million), produces a variety of downstream products from metal concentrates and is one of China's largest exporters of tungsten products.
Shares in King Island – which has a paltry 36 million shares on issue – were up A18c at $1.18 this morning, capitalising the company at $42.4 million.
hope VML has similar prospects
cheers
frank
VML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
