China Mining Resources eyes 19.9 pct stake in Quadra
interfax.cn
Hong Kong-listed China Mining Resources Group Ltd. plans to increase its stake in Canada-based Quadra Mining Ltd. to 19.9 percent through stock market purchases, China Mining Resources announced on Jan. 12.
China Mining Resources' wholly-owned subsidiary Best Tone had acquired 2.65 million Quadra shares as of Jan. 9, equivalent to a 4.02 percent stake in the Canadian company. Further share purchases in Quadra are awaiting shareholder approval.
The Chinese company said that it will not spend more than HKD 200 million ($25.78 million) on further Quadra purchases, and is not prepared to pay a per-share price higher than CAD 5.28 ($4.34).
According to China Mining Resources, the move is an opportunity to expand its investment in the overseas mining industry, and recent fluctuations in Quadra's share price will likely be short-lived. The company cited negative sentiment in global equity markets as an influencing factor.
To respond to any sudden change in the market, the company said it is prepared to dispose of Quadra shares in the future.
Toronto Stock Exchange-listed Quadra, based in Vancouver, engages in the development and mining of base metals, particularly copper. Its projects include the open pit Robinson Copper Mine in Nevada and the Carlota Copper Project in Arizona, in the United States, as well as the Sierra Gorda Project in Chile, and the Malmbjerg molybdenum project in Greenland.
China Mining Resources suspended share trading on Dec. 22, 2008 and resumed trading in Hong Kong on Jan. 13 following the announcement. Its shares closed in Hong Kong at HKD 0.209 ($0.03) on Jan. 13, down 5.43 percent from the previous trading day.
Quadra shares closed at CAD 3.10 ($2.55) on Jan. 13 in Toronto, up 0.98 percent from Jan. 12. |
