Financing project of a domestic mining company
| Project Number | CN20100208001 |
| Project Name | Financing project of a domestic mining company |
| Transfer Proportion(%) | -- |
| Price | Negotiable |
| Publication Period | 2010-02-08 - 2011-02-08 |
| Industry | |
| Region | |
| Profile | A company in Southwest China has mining rights for eight mines. Most of its mining rights are for lead-zinc mines. One of the mining rights for lead-zinc mine has a mining area of 6.7 square kilometers and the mining certificate has been obtained. The mine has a resource of lead and zinc of 80,239 tons and 99,741 tons. The mine has a value of 1.26 billion yuan. The rest seven mining rights are in the process of survey and pre-survey. Judging from the prospected reserve of the eight mines, the overall value of the mines is 4.79 billion yuan. Based in different areas, the eight mining rights of the company are mainly distributed in three mining areas. According to the prospect and designing plan of the three mines (excluding mineral separation), if there is an investment of between 20 million and 30 million yuan every year from 2010 on, detailed and reliable reserve reports for the three relatively mature mining areas can be submitted in two to three years. At the same time, mining and production can be started. Beginning from 2013, basing on the minimum production capacity of the three mines (45 percent of the full capacity), it is expected to produce 500,000 tons of copper, lead, zinc and molybdenum ores. Calculating on the price of ore in October 2009, the annual output value will reach about one billion yuan since 2013.1. Share-holding investment: The investor can invest between 150 million and 180 million renminbi (in three years) to form a share-holding position of the targeted company and accelerate the prospecting process of the afore-mentioned three mines to form a mining and production capacity. If necessary, the financial structure and share-holding structure of the targeted company can be re-grouped according to the requirement of IPO.2. Merging and acquisition: The acquirer (a listed company) can target the purchase of the three mines and acquire the mines through increasing shares or issuing bonds. The fund will be injected into the listed company and the listed company can pay the share-holder of the targeted company with shares or bonds. 3. Mortgage financing: The financing company can arrange financing in three years to invest into the three mines to enable the mines for mining and production. The target company can mortgage with company shares, mining certificate, prospecting certificate and the lead, zinc and molybdenum ores. Beginning from the fourth years, the targeted company will pay back the principal and interest together according to the agreed rate by both sides.4. Industrial chain operation: The operator can supply the lead, zinc and molybdenum powder of the three mines of the targeted company to the downstream smelting companies basing on its own credit and according to the fixed price of a long-term agreement in exchange of the pre-payment or borrows from the down-stream companies.5. Single mine joint venture: The investor may choose a mine in operation of a targeted company to set up a separate joint venture and then gradually expand the scope of cooperation.6. Jointly set up a mining investment share-holding platform: The investor and the targeted company set up a mining resource share-holding group authorized by local government. In addition to the merger of the above three mature mining rights of the targeted company, it can further merge the several mining rights and other copper, lead and zinc prospecting plants in the surrounding copper, lead and zinc belt through the platform. Once the platform is put into operation, the area is expected to become the largest copper, lead and zinc production base in China as well as in Asia in two to three years. |
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| From | CBEX |