Jinchuan secures equity stake in Fox Resources

30 June 2008 | 03:45 Code : 17642 Geoscience events
Pilbara nickel explorer and producer, Fox Resources Ltd announced yesterday...

  Pilbara nickel explorer and producer, Fox Resources Ltd announced yesterday that China's largest nickel producer, Jinchuan Group Ltd(Jinchuan), has today secured plans to subscribe for 18,800,000 fully paid ordinary shares in Fox at a premium issue price of A$0.95, for an equity stake in the Company of 11%.Jinchuan has received statutory approvals from the Provincial Government of Gansu Province and the Central Government of the People's Republic of China to enter into a strategic agreement to take the equity stake in Fox.It is expected that the share issue and funds transfer will be completed within the next two weeks. Jinchuan will be issued a further 8,000,000 attaching options exercisable at $1.20 expiring 12 months after the issue of the 18,800,000 fully paid ordinary shares. The funds raised from the issue will be applied to development of the Company's nickel projects, process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km2of tenements accessible to Fox. On finalisation of the initial share issue, a Jinchuan representative will be invited to join Fox's Board. Fox Resources is a diversified base metals explorer and producer with nickel, copper and zinc projects in the Pilbara of Western Australia, committed to growth through production expansion, diversification and exploration success.The Company is generating excellent cashflow from the West Whundo copper-zinc mine which is being used to fund a pipeline of projects within the Pilbara region of Western Australia.

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