M...this was posted by Susan on peter's blog...so to me it seems the chinese gov't is making it very plausible for thi co. to be taken over by opening up the doors like this.

KMK info – Most of you already know about the info in the first paragraph below but thought the 2nd paragraph might contain additional info for those interested. Also, THANKS PETER, for responding to Ryan and providing additional info to your readers.

“Zijin Mining (2899 HK – HK$7.61) announced to subscribe for 21.1m shares (or 12.80% of enlarged total share capital) of Continental Minerals (KMK CN – CAD1.15) with a consideration of CAD22.6m (~CAD1.07/share). Continental Minerals’ principal resources are located in Xietongmen, Tibet Autonomous Region, China. Xietongmen deposit has gold resources of 4.31m oz and copper resources of 2,092m lbs, while Newtongmen deposit has indicated gold resources of 2.30m oz and copper resources of 2,770m lbs. Compared with Zijin’s current gold resources of 704.3 tonnes (~22.6m oz) and copper resources of 9.67m tonnes (~21,319m lbs), the acquired equity interest (12.80%) represented 3.7% of current gold resources and 2.9% of current copper resources.

*******************************************************************************************************************************

China now hopes that Shetongmon will be a model for future mining projects in the TAR, thus encouraging more foreign investment. Already it has offered substantial incentives to Continental, including the agreement to pay for, and build, the railroad lines between Shetongmon and the nearest smelter in Gansu Province, as well as providing hydropower to the copper concentrator. The Chinese authorities say they will also accept just half the advertised freight rate for the copper concentrate which Continental will send to the smelter, and will exempt Continental from paying any kind of tax to Beijing during its more profitable early years of operation.*”

* ‘The Campaign to “Open Up the West”:National, Provincial-level and Local Perspectives’, David S.G. Goodman, China Quarterly,Volume 178, June 2004, pp 317–334