chinese takeover, page-11

Takeover talks makes Singapore media. All looks very promising. Well done to all holders that have stuck it out.

Anyone have a copy of Gordon Capital report mentioned below ?


"China Xingang mulls friendly takeover of Australian iron ore explorer Accent


Singapore (Platts)--31Oct2011/207 am EDT/607 GMT



China's Xingang Resources is in advanced stages of planning a possible friendly takeover bid for Australia-listed iron ore and gold explorer Accent Resources, the target company said Monday.

Xingang, the Hong Kong-based wholly owned subsidiary of China's Xingang Iron and Steel in Henan province,"has already arranged funding and received all necessary approvals in China" to proceed with a bid for Accent, said the Australian company in a statement.

The Chinese pary has also obtained confirmation from Australia's Foreign Investment Review Board that it does not require approval if it decides to go ahead with the bid, Accent added.


Xingang is among more than 10 Chinese companies that Accent has been negotiating with on the sale of its key asset -- the Magnetite Range project in the Mid-West region of Western Australia state.

The 100% Accent owned Magnetite Range project is centred on the Great Northern Highway about 300 km northeast of Perth in the Yalgoo mineral field. It is also immediately adjacent to Mount Gibson's Extension Hill magnetite project, which is scheduled for first sales before the end of this year.

Magnetite Range has sufficient resource for a conceptual mine life of 20 years at 5 million mt/year concentrate output, according to information on Accent's website.

Gordon Capital Research said in an analyst report published this month that the Magnetite Range deposit "is potentially very valuable given its strike length, relative shallowness, openness at depth, coarse grain size, quality and ease of beneficiation."

"However, given the capital required to proceed to a full-scale development and the nearby presence of other significant deposits, we believe that ACS will most likely maximize its value in the project at the pre-feasibility stage, at which point other parties are likely to emerge with the capability to advance the project through to development," said Gordon.

Accent's other assets include the Katanning magnetite and vanadium project, and the Norseman gold project, both in Western Australia.

Xingang Resources' parent company Xingang Iron and Steel has current steel production capacity of 3.3 million mt/year, according to Gordon. The company in May acquired a 12.7% interest in Australian coal developer Northern Energy, but disposed of the stake in August when Queensland coal producer New Hope made a takeover bid for Northern Energy."

--Kimfeng Wong, [email protected]