Foreign Investment Review Board Approves Zijin Investment in Xanadu
August 22 2022 - 06:00AM
Xanadu Mines Ltd (
ASX: XAM, TSX: XAM)
(
Xanadu or the
Company) is
pleased to announce that Zijin Mining Group Co., Ltd.
(
Zijin) has advised Xanadu that on 11 August 2022,
the Australian Foreign Investment Review Board
(
FIRB) issued a no objection notification for the
acquisition of Xanadu shares by Zijin, through its wholly owned
subsidiary Jinping (Singapore) Mining Pte. Ltd., sufficient to
complete its investment in Xanadu, as announced on 19 April 2022.1
This clears one of the three approvals required
to progress the strategic partnership between Xanadu and Zijin,
which will fund Xanadu to progress the Company’s flagship
Kharmagtai Copper-Gold Project (Kharmagtai)
through its next phase of project evaluation and decision on future
development. These approvals include:
-
FIRB approval in Australia
-
Regulatory approvals in Peoples’ Republic of China (PRC)2
-
Xanadu shareholder approval
The strategic partnership includes three phases
of investment. The first phase (Phase 1 Placement)
was completed on 27 April 2022, raising A$5.56 million via a
subscription by Zijin to 139 million fully paid ordinary shares in
Xanadu at A$0.04 per share to provide Zijin with a 9.9%
shareholding in the Company.
The two subsequent phases (which remain subject
to further negotiation, entry into formal documentation and the
remaining approvals above) include a second placement of ordinary
shares at A$0.04 per share to increase Zijin’s total shareholding
in the Company to 19.99% (Phase 2 Placement) and
the creation of a 50/50 Joint Venture in Khuiten Metals Pte. Ltd.,
the entity currently 100% owned by Xanadu that holds a 76.5%
effective interest in Kharmagtai (Phase 3 JV), for
a cash investment of US$35 million.
Xanadu’s Executive Chairman &
Managing Director, Colin Moorhead, said, “FIRB approval is
an important step in finalising our agreement with Zijin,
confirming the Australian Government’s approval of the transaction.
This brings us one step closer to the funding we need to develop
Kharmagtai to a decision to construct and continue to realise its
potential.”
About Xanadu Mines
Xanadu is an ASX and TSX listed Exploration
company operating in Mongolia. We give investors exposure to
globally significant, large-scale copper-gold discoveries and
low-cost inventory growth. Xanadu maintains a portfolio of
exploration projects and remains one of the few junior explorers on
the ASX or TSX who control a globally significant copper-gold
deposit in our flagship Kharmagtai project. For information on
Xanadu visit: www.xanadumines.com.
For further information, please
contact:
Colin
Moorhead |
Spencer
Cole |
Executive Chairman & Managing Director |
Chief Financial Officer & Chief Development Officer |
E: colin.moorhead@xanadumines.com |
E: spencer.cole@xanadumines.com |
|
|
P: +61 2 8280 7497 |
|
W: www.xanadumines.com |
|
This Announcement was authorised for release by Xanadu’s Board
of Directors.
All dollar amounts are in Australian dollars
unless otherwise indicated.
Forward-Looking Statements
Certain statements contained in this
Announcement, including information as to the future financial or
operating performance of Xanadu and its projects may also include
statements which are ‘forward‐looking statements’ that may include,
amongst other things, statements regarding targets, estimates and
assumptions in respect of mineral reserves and mineral resources
and anticipated grades and recovery rates, production and prices,
recovery costs and results, capital expenditures and are or may be
based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions. These
‘forward-looking statements’ are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Xanadu, are inherently subject to significant technical, business,
economic, competitive, political and social uncertainties and
contingencies and involve known and unknown risks and uncertainties
that could cause actual events or results to differ materially from
estimated or anticipated events or results reflected in such
forward‐looking statements.
Xanadu disclaims any intent or obligation to
update publicly or release any revisions to any forward‐looking
statements, whether as a result of new information, future events,
circumstances or results or otherwise after the date of this
Announcement or to reflect the occurrence of unanticipated events,
other than required by the Corporations Act 2001 (Cth) and the
Listing Rules of the Australian Securities Exchange
(ASX) and Toronto Stock Exchange
(TSX). The words ‘believe’, ‘expect’,
‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’,
‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’,
‘schedule’ and similar expressions identify forward‐looking
statements.
All ‘forward‐looking statements’ made in this
Announcement are qualified by the foregoing cautionary statements.
Investors are cautioned that ‘forward‐looking statements’ are not
guarantee of future performance and accordingly investors are
cautioned not to put undue reliance on ‘forward‐looking statements’
due to the inherent uncertainty therein.
For further information please visit the Xanadu
Mines’ Website at www.xanadumines.com.
__________________________
1 ASX/TSX Announcement 19 April 2022 – Strategic
Partnership with Zijin Mining Group2 Approvals may include Ministry
of Commerce, National Development and Reform Commission, and State
Administration of Foreign Exchange
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