China Vanadium TitanoMagnetite Mining Company Limited, together with its subsidiaries, announced that Sichuan Lingyu Investment Co Ltd, an indirect wholly owned subsidiary of the Group, entered into the acquisition agreement to acquire the entire paid up registered capital of Panzhihua Yixingda Industrial Trading Co Ltd for a consideration of at least CNY 600 million on 28 December 2011.
The asset of Panzhihua is the mine which covers an area of 20.37 square kilometers at Renhe District, Panzhihua City, Sichuan Province.
The term of the Exploration Permit runs from 14 November 2011 to 31 December 2013. It is estimated by an independent geological agent that the Mine has a minimum of 100 million tonnes of resources and reserves with minimum average iron content (Type 333 or above) of 15% or above. It is currently expected that mining with respect to the Mine will commence before 31 December 2014.
Mr Jiang Zhong Ping chairman of China VTM Mining said “The Panzhihua Mine is a vanadium bearing titano magnetite mine with an expectedly large volume of mineral resources and reserves. The iron content of the vanadium-bearing iron concentrates from the Mine could reach 55% or more through magnetic beneficiation. In addition, there is sufficient water and power supply and transportation system within close proximity of the Mine, which makes it ideal for large scale mining operation and construction of large scale processing plant for the Mine. Therefore, acquisition of the Panzhihua Mine will efficiently facilitate the Group’s new iron concentrates production line, which in turn will enable the Group to increase its production capacity substantially in the next three years. Such acquisition is in line with the Group’s key expansion strategies to further develop its current business by increasing its iron ore resources and reserves and iron concentrates production capacity. Looking ahead, we will continue to implement the Group’s expansion strategy, enhance the Group’s growth potentials, and strive to generate the greatest returns to our shareholders.”
