Jinchuan deal finalised: Fox receives $17.8m

China's largest nickel producer, Jinchuan Group Limited has successfully concluded a...

  China's largest nickel producer, Jinchuan Group Limited has successfully concluded a strategic agreement to take an equity stake in the Fox Resources, with receiving funds from Jinchuan totalling A$17,860,000.Under the agreement, Jinchuan will subscribe for 18.8 million fully paid ordinary shares in Fox at a premium issue price of A$0.95, representing a 61% premium to the closing price ($0.59) of Fox shares on April 16, 2008. As a result, Jinchuan will own 11% of the issued shares in Fox. Jinchuan will be issued a further 8 million attaching options exercisable at A$1.20 expiring 12 months after the issue of the 18.8 million fully paid ordinary shares. Fox said the funds raised from the issue will be applied to development of the company's nickel projects, as well as to processing improvements to the Radio Hill mill and accelerating nickel exploration on the 3,000sqkm of tenements accessible to the company. Fox Resources Managing Director, Don Harper said the subscription of shares at a premium is a significant vote of confidence in the company's operations, management team and base metal exploration potential.“We welcome Jinchuan as our largest shareholder and we look forward to strengthening the relationship between the two companies,” Mr Harper said.