19 April 2022
Xanadu Mines Ltd (ASX: XAM,TSX:XAM) (Xanaduor theCompany) is pleased to announce a strategic partnership (Agreement) with Zijin Mining Group Co., Ltd (Zijin)to progress the Company’s flagship KharmagtaiCopper-Gold Project (Kharmagtai) through its next phase of project evaluation and decision on future development.
Under the Agreement, Zijin will invest in both the Xanadu corporate level and the Kharmagtai project level through a series of transactions commencing with the subscription of 139 million fully paid ordinary shares in Xanadu (New Shares) to provide Zijin with a 9.9% shareholding in the Company (Phase 1 Placement). The Phase 1 Placement will be conducted at an issue price of A$0.04 per share, representing approximately a 38%premium to Xanadu’s last traded priceof A$0.029, and will raise approximately A$5.56 million.
Two subsequent phases are then proposed (subject to formal documentation) including a second placement of ordinary shares at A$0.04 per share to increase Zijin’s total shareholdingin the Company to 19.99% (Phase 2 Placement) and the creation of a 50/50 Joint Venture in Khuiten Metals Pte. Ltd., the entity currently 100% owned by Xanadu that holds a 76.5% effective interest in Kharmagtai (Phase 3 JV)1, for a cash payment of US$35 million.
Executive Chairman & Managing Director, Colin Moorhead, said,“We are delighted to have attracted Zijin, a global top 10 copper producer and highly capable mine developer as our partner, and we look forward to finalising negotiations to move Kharmagtai forward and realise its potential on an accelerated path. This partnership is a good outcome for our shareholders, for Mongolia and for a world looking to fill a global copper supply gap.”
Highlights
Partnership with Zijin Mining Group, a global mining company and top 10 copper producer.
Staged investment by Zijin to inject up to approximately A$11 million1into Xanadu and up to a
further US$35 million1,2into the Kharmagtai project.
