GobiMin sells its three Chinese nickel-copper properties in deal worth C$96M

2 hours ago

TORONTO — GobiMin Inc. (TSXV:GMN) is selling its three nickel-copper properties in China to Xinjiang Xinxin Mining Industry Co., a major Chinese nickel producer.

GobiMin, with offices in Toronto and Hong Kong, said Monday the price is 540 million renminbi, equivalent to C$96 million, for two subsidiaries in which it holds interests of 93.6 per cent and 95.2 per cent.

It expects to receive pre-tax proceeds of C$87.5 million from the sale of the Yellow Mountain East and Xiangshan underground mines and the Yellow Mountain development site, all in the Uygur region of northwestern China.

This follows a strategic review announced by GobiMin on Oct. 20 "due to the recent dramatic decline of nickel and copper prices."

The company said Monday that the deal will increase its financial resources while "current market conditions will provide exciting opportunities for cash-rich mining companies."

The transaction, expected to close by Feb. 6, carries a breakup fee worth C$4.5 million.

GobiMin also has 40 per cent interest in the newly discovered Yanxi copper deposit in the Hami region.

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