FINANCE Hannans? Chinese partner drags its feet PETER KLINGER 227 words 3 October 2007 The West Australian METRO 59 English (c) 2007, West Australian Newspapers Limited
Hannans Reward shares defied Australias soaring sharemarket to slump 17 per cent yesterday amid concerns its Chinese partner would pull out of a key funding agreement with the Perth explorer.
Having already invested $2 million at 55 a share for a 4.5 per cent stake in Hannans, Shandong Landbridge Group is now dragging its feet in coming up with an additional $3.5 million.
Shandong has repeatedly asked for an extension of time to come up with the second tranche of funds, also at 55, which was originally due at the end of July.
The equity investment is part of a $5.5 million injection agreed to by Shandong in April, which would have seen the Chinese company become Hannans second-biggest shareholder with about an 11 per cent stake.
Hannans managing director Damian Hicks said yesterday he remained confident Shandong would complete the two-tranche investment. Even if it did not, Hannans exploration program would not be affected given it had about $4 million in cash.
A much-anticipated drilling program at its Forrestania nickel and gold project, about 12km north of Western Areas Flying Fox mine, was on target to begin next week.
Investors, however, remained concerned about Shandongs commitment, marking Hannans shares down 7.5 to 37.5.
Peter Klinger
HNR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
