China Yunan Copper (CYU) signs agreement to purchase 51% interest in a Chinese registered Resource Company to explore for and develop existing mineral deposits in Laos and Asia. Key components of the Joint Venture are: CYU to invest AUD$2.8 million (in 3 equal stages over the 12 months following final approvals for the transaction) to acquire a 51% percent interest in Yunnan Copper Sanmu Mining Limited, a Chinese registered company holding near development copper silver projects in northern Laos within transport distance of existing processing centres in southern Yunnan Province, Peoples Republic of China, subject to regulatory and shareholder approvals.
Norm Zillman, Co Chairman of CYU, said: “The acquisition of a controlling interest in Sanmu Mining Ltd with its holding in the Laos Copper Silver Development JV represents a unique opportunity to operate in one of the most prospective copper-silver belts in the world with an operating partner under CYU supervision. YCI can provide production facilities and importantly permitting and operational expertise in this area. This opportunity will also allow CYU to undertake joint operations in other parts of Asia.” “We are happy with the co-operation between YCI and CYU since becoming a cornerstone investor of CYU over three years ago and are pleased to enter an alliance to grow known resources with CYU in Laos and Asia generally. YCI is a large organization of over 20,000 employees but we do not have the resources and expertise to advance all of our projects.” “We believe an alliance such as this will benefit both CYU and YCI shareholders. It is critical for YCI to expand its Chinese production base through the partnership with CYU to bring some exploration projects into production. CYU provides YCI with an experienced exploration and evaluation team to deploy on some of our projects near the production centres.”
CYU is an Australian company formed to explore for and develop minerals in Australia and overseas. Cornerstone investor (21.2%), Yunnan Copper Industry (Group) Co Ltd (YCI), is one of China’s largest copper producers. YCI’s 51% shareholder is Chinalco. CYU’s cornerstone investor Yunnan Copper Industries (YCI) to undertake regional exploration and project generation work in Yunnan Province, China and Laos.
http://www.traderdealer.com.au/Fundamentals/cyu
