SHANGHAI, CHINA, March 29, 2012 /CNW/ - As previously announced on February 6, 2012, Yanggu Xiangguang Copper Co. Ltd. ("XGC") entered into a subscription agreement on February 6, 2012 (the "Subscription Agreement") with EMED Mining Public Limited (the "EMED") pursuant to which XGC's direct, wholly-owned subsidiary, Hong Kong Xiangguang International Holdings, agreed to subscribe for 105,378,519 ordinary shares in the capital of EMED (the "Subscription"). The purchase price for the Subscription was negotiated based on an agreed upon share price of £0.09 (or approximately US$0.14) per ordinary share. On March 22, 2012, the Subscription closed and as a result XGC acquired beneficial ownership of 105,378,519 ordinary shares of EMED which constitute approximately 10.9% of the outstanding ordinary shares of EMED based on there being 965,670,348 ordinary shares of EMED in issue as of March 22, 2012.
The ordinary shares issued in respect of the Subscription have been issued pursuant to the Subscription Agreement and they form part of an aggregate funding package of approximately US$30 million (comprising an equity investment of approximately US$15 million and a debt investment of approximately US$15 million by way of a cost overrun support facility) in exchange for a 10.9% equity position in EMED and limited off-take rights over a portion of future copper production at EMED Mining's Rio Tinto Mine in Spain.
XGC intends to review its investment in EMED on a continuing basis. Depending on various factors, including, without limitation, EMED's financial position, the price levels of the ordinary shares of EMED, the conditions in the securities markets and general economic and industry conditions, XGC's business or financial condition and other factors and conditions XGC deems appropriate, XGC may in the future take such actions with respect to its investment in EMED as XGC deems appropriate, including, without limitation, making proposals to EMED concerning changes to the capitalization, ownership structure or operations of EMED, acquiring ordinary shares of EMED or selling, transferring to an affiliated party or otherwise disposing of some or all of the ordinary shares of EMED, in each case subject to applicable laws and the terms of the agreements with EMED. In addition, XGC may formulate other purposes, plans or proposals regarding EMED or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors or XGC may change its intention with respect to any and all matters referred to above.
XGC and EMED have also entered into a commitment letter which contains the indicative terms for a US$15 million cost overrun support facility. In addition, a subsidiary of EMED has granted XGC off-take rights over a portion of future copper production at EMED's Rio Tinto Mine in Spain.
About Yanggu Xiangguang Copper Co. Ltd.
XGC is one of the world's largest Copper smelting, refining and processing group located in Shandong province of China, with a designed smelting capacity of 450,000mt/y Cu from concentrate and refining capacity of 600,000mt/y Copper cathodes. It employs the state-of-art copper smelting technology of double flash smelting and converting. XGC's parent company, GMK Holding Co., Ltd ("GMK"), is a leading privately owned enterprise group in China including significant food production interests.
For further information:
XGC's address is set out below. For further information or to obtain a copy of the report filed by XGC in accordance with applicable Canadian securities laws, contact XGC at the address specified below:
Xiangguang Copper (Shandong)
1 Xiangguang Road
Tel: +86 (0) 635 6555001
Xiangguang Copper (Shanghai)
Bank of China Tower
200 Mid Yincheng Road
Tel: +86 (0) 21 20369299