Antilles Gold (ASX:AAU) has signed a non-binding letter of intent with Shandong Xinhai Mining Technology, which tasks the Chinese group with engineering, procurement, and construction at the Neuva Sabana copper-gold mine.
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While Antilles is certainly involved as a signatory – and will give Xinhai 590 million AAU shares at 0.7c when the deal goes through – the main deal is between the Chinese company and Cuban miner Minera La Victoria.
While nothing’s over the line quite yet, MLV and Shandong Xinhai will now be working towards formalising the contract by August 15 at the latest.
Antilles’ part in the deal will see it hand over the $4.13 million in company shares and bring a Xinhai-nominated representative onto the board.
Share action has been muted for AAU; maybe due to the deal still sitting in limbo.
The Aussie gold-copper explorer’s chiefs are quite confident the deal will get over the line in the next few weeks, though, with chairman Brian Johnson saying the company “is looking forward to a long-term relationship with Xinhai.”
Xinhai will pay US$16 million in ‘project financing’ as part of the Cuban deal.
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With cash in hand, MLV will begin building access and haul roads at Nevua Sabana immediately. Construction is also being plotted for earthworks, a tailing storage facility, and water management sites. So too a waste dump.
Xinhai is moving into action too: Senior construction managers, supervisors, technicians, and several skilled tradesmen are now travelling from China to Cuba.
Mine representatives will also need to meet with Cuban government officials soon.
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Isaac McIntyre
The Market Online
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