EMED Mining shares shot-up around 15% as its efforts to restart the Rio Tinto copper mine were endorsed by a new Chinese partner. The company revealed an arrangement with Yanggu Xiangguang Copper Company. This future off take partner is providing EMED with USD 30 million and taking a 10% stake in the company.

EMED said that XGC will be a cornerstone customer and as part deal it will have the rights for 25% of the mine’s currently reported copper reserves at market prices. XGC is investing USD 15 million in equity buying new EMED shares priced at 9 pence each. It has also agreed to provide or arrange a USD 15 million debt facility.

Mr Harry Anagnostaras Adams MD of EMED Mining said that "The financing and offtake arrangements announced reflect our long stated commitment to build the highest quality links for a small portion of our production into China, the key driver of global demand for our product. To do so via an alliance with leading Chinese metal processor XGC is especially pleasing.”

He said that "This complements our overall product strategy wherein most of our production is expected to be delivered for copper production use in Spain and other European smelters with whom we have also established appropriate dialogue.”

(Sourced from www.proactiveinvestors.com)