In the end of February, BVI-registered mining corporation China Natural Resources, Inc. announced that it had entered into an agreement with Feishang Group Limited, the company engaged in the smelting and refining of copper for distribution in China. Pursuant to this deal that took place on February 20, China Natural Resources will acquire from Feishang Group L 100% of the issued and outstanding capital stock of Mark Faith Technology Development Limited and its operating subsidiary.
Mark Faith owns all of the outstanding capital stock of China-based Bayannaoer City Feishang Copper Company Limited, operating in Inner Mongolia. Feishang Copper commenced trial production in May 2007, and the commercial production is expected to be commenced in early July 2008, upon the receipt of necessary certifications and permits from the Chinese authorities.
The purchase price for the shares of Mark Faith is equal to the lesser of the audited consolidated net asset value of Mark Faith as at December 31, 2007, and will make RMB24,252,464 (approximately US$3,300,000). Additionally, the BVI company will pay FGL RMB47,291,576 (approximately US$6,500,000), in satisfaction of outstanding indebtedness of Mark Faith to FGL.
At the time of signing the Agreement, China Natural Resources paid FGL RMB30,000,000 (approximately US$4,110,000). The balance of RMB41,544,040 (approximately US$5,691,000) will be paid at a closing that is expected to be made on or before March 7, 2008.
CEO and Chairman of China Natural Resources, Mr. Feilie Li, said that this is “an important step taken by us towards adopting an integrated operating model that includes mining, ore processing, smelting and refining of copper and other non-ferrous metals. “
China Natural Resources continues promoting other natural resources development projects: in January, the BVI-based corporation entered into an agreement with Chinese state-owned Jiangxi Province Coal Group Company, to establish an equity joint venture company focused on exploration and mining of coal and other mineral resources in Guizhou Province and other regions of China.
