A once-abandoned copper mine in New South Wales, Australia is being revitalized through a partnership with a Chinese company.
KBL Mining Limited (ASX:KBL) said Thursday that Guangdong Guangxin Mining Resource Corp. (GMR) is taking a 25% stake in KBL’s Mineral Hill Mine for A$80 million.
State-owned GMR will also buy KBL’s 75% share of the mine’s copper concentrates, at a 25% discount to the current London Metals Exchange copper price.
In addition, the Chinese company will take a 15% stake in KBL by paying $9.2 million for 33 million KBL shares. The shares are being offered at 28 cents apiece, which is a 25% premium to the weighted average share price during the past six months.
“We are delighted that this opportunity, with a company the size of GMR, not only provides us with capital to rapidly expand Mineral Hill, to start developing Sorby Hills in 2012 and to pursue other opportunities, but provides us with a long term, stable partner for KBL that will assist our expansion from a single-mine company to a medium-sized multi-mine corporation,” said KBL’s Executive Chairman, Jim Wall.
The Sorby Hills silver-lead-zinc deposit in Western Australia is one of the largest near-surface silver-lead deposits in the world, according to KBL. The project is in its final stages of permitting.
