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Benzinga
Benzinga
Business
Akanksha Bakshi

Zijin Mining Agrees To Invest In Xanadu Mines, Kharmagtai Project

  • Xanadu Mines Ltd (TSX:XAM) has entered a strategic partnership with Zijin Mining Group Co., Ltd (OTC:ZIJMF) to progress its flagship Kharmagtai Copper-Gold Project.
  • As per the agreement, Zijin will invest in both the Xanadu corporate level and the Kharmagtai project level through a series of transactions commencing with the subscription of 139 million fully paid ordinary shares in Xanadu to provide Zijin with a 9.9% shareholding (phase 1).
  • The Phase 1 Placement will be conducted at an issue price of A$0.04 per share, representing ~a 38% premium to Xanadu’s last traded price of A$0.029, and will raise ~A$5.56 million.
  • Two subsequent phases are then proposed, including a second placement to increase Zijin’s stake to 19.99% and the creation of a 50/50 JV 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 payment of $35 million.
  • Price Action: XAM shares are trading higher by 27.59% at C$0.037 and ZIJMF higher by 1.72% at $1.77 on the last check Tuesday.
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