American Chronicle reported that Metals X Limited has signed a heads of agreement with the world's largest fully integrated tinminer, Yunnan Tin Group Company Limited of China to form a JV to advance its tin interests in the state of Tasmania.

Under the agreement, MLX will sell up to a 60% interest in all the assets of its wholly owned subsidiary, Bluestone Mines Tasmania Private Limited to YTG for USD 60 million.

The first stage will involve an unconditional 50% interest for USD 50 million followed by a conditional 10% for a further USD 10 million.

MLX will form an unincorporated JV with YTG to continue to develop and advance the Tasmanian tin assets.

Mr Warren Hallam MD of MLX said that "This major investment by YTG speaks volumes for the future potential of our Tasmanian tin assets and the tin market in general.

He said that "Joining forces with the world's leading tin miner gives MLX security and growth through access to smelters for offtake and technology to improve the performance and efficiency of its operations and the future development of its Rentails project."

Mr Hallam said that the deal also strengthened the financial position of BMT, its employees, internal and external stakeholders.

He said that "It provides the platform for the continued development of the Renison Project into a significant long term global tin producer during what are difficult times for the resource sector, in general, as metal prices and consumption rates respond to the Global Financial Crisis."

The agreement is subject to FIRB, Chinese Government and MLX shareholder approvals.

(Sourced from Americanchronicle.com)