Posted in | News | Gold | Mining Business

Minco Gold Signs JV Agreement to Buy 51% Equity Interest in Tugurige Gold Project, China

Minco Gold Corporation (TSX:MMM)(NYSE Amex:MGH)(FRANKFURT:MI5) has announced that the Company, through its wholly owned subsidiary, Minco Mining Co., Ltd., has entered into a Joint Venture Agreement with the 208 Exploration Team, a subsidiary of China National Nuclear Corporation, to acquire 51% equity interest on the Tugurige Gold Project located in Inner Mongolia, China.

Under the terms of the JV Agreement, the 208 Team will set up a new entity (the "JV Co") and transfer its 100% interest in the Tugurige Gold Project into the JV Co, Minco China has the right to contribute a total of RMB 250 million (approximately C$37 million) (the "Earn-In Amount") to earn a 51% equity interest in the JV Co, with RMB 180 million (approximately C$27 million) to be contributed by the end of March of 2011. The Earn-In Amount is subject to an independent evaluation of the value of the Tugurige Project. To secure the project, Minco China has provided RMB 60 million (approximately C$9 million) in the form of a secured short term loan to the Tugurige Gold Mine. The short-term loan is secured by all the assets of the mine, including the mining licenses and exploration permits. Minco China has the right to convert the loan into its contribution to the Earn-In Amount upon appropriate approvals obtained.

The Tugurige Gold Project consists of the Tugurige Gold Mine, which consists of a 2.62 square kilometers area covered by one mining license, and its surrounding areas of 42.34 square kilometers covered by two exploration permits. The Tugurige Gold Mine is a high grade underground mine which has been producing gold since 1996 and currently operating at 600 tonnes per day, including two CIP mills with approximately 85% gold recovery. Gold is hosted within multiple quartz veins throughout the property.

Minco Gold is currently in the process of conducting detailed due diligence on the project and preparing a NI 43-101 compliant resource estimation on the property.

The JV Agreement is subject to the approvals of various Chinese government agencies. The Company will pay a finder's fee to a non-arm's length third party upon all approval obtained and successful conclusion of the transaction.

Source: Minco Gold Corporation

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Minco Capital Crop. (2019, February 18). Minco Gold Signs JV Agreement to Buy 51% Equity Interest in Tugurige Gold Project, China. AZoMining. Retrieved on February 25, 2024 from https://www.azomining.com/News.aspx?newsID=2530.

  • MLA

    Minco Capital Crop. "Minco Gold Signs JV Agreement to Buy 51% Equity Interest in Tugurige Gold Project, China". AZoMining. 25 February 2024. <https://www.azomining.com/News.aspx?newsID=2530>.

  • Chicago

    Minco Capital Crop. "Minco Gold Signs JV Agreement to Buy 51% Equity Interest in Tugurige Gold Project, China". AZoMining. https://www.azomining.com/News.aspx?newsID=2530. (accessed February 25, 2024).

  • Harvard

    Minco Capital Crop. 2019. Minco Gold Signs JV Agreement to Buy 51% Equity Interest in Tugurige Gold Project, China. AZoMining, viewed 25 February 2024, https://www.azomining.com/News.aspx?newsID=2530.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type
Submit
Azthena logo

AZoM.com powered by Azthena AI

Your AI Assistant finding answers from trusted AZoM content

Azthena logo with the word Azthena

Your AI Powered Scientific Assistant

Hi, I'm Azthena, you can trust me to find commercial scientific answers from AZoNetwork.com.

A few things you need to know before we start. Please read and accept to continue.

  • Use of “Azthena” is subject to the terms and conditions of use as set out by OpenAI.
  • Content provided on any AZoNetwork sites are subject to the site Terms & Conditions and Privacy Policy.
  • Large Language Models can make mistakes. Consider checking important information.

Great. Ask your question.

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.