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CMI inks deal to buy controlling stake in South Africa iron ore mine company
MAINBOARD-LISTED China Mining International (CMI) has inked a deal to buy a controlling stake in a company that holds a prospecting right for an iron ore mine project in South Africa, it said in a Singapore Exchange filing on Monday.
CMI signed a memorandum of understanding on Monday with Sino-Africa Mining International Limited and Yan-Bing Zhang for CMI to acquire shares in Aero Wind Properties from them, it said in its statement.
Sino-Africa indirectly holds 40 per cent and Mr Zhang indirectly owns 34 per cent of Aero Wind Properties, CMI noted.
It said that it may acquire part of or all of that, but would decide how much to purchase after a valuation of Aero Wind Properties' assets has been carried out, adding that this valuation was still ongoing.
Aero Wind Properties was registered in South Africa in 2009 and the mine project is in Thabazimbi, Limpopo Province, South Africa, CMI said, adding that the acquisition was "an opportunity for the company to expand its core business in the exploration, mining and trading of mineral resources which in turn will potentially provide it with a regular stream of revenue".