Feb. 9, 2011- Guangdong Orient Zirconic Ind Sci and Tech and DCM DECO Metal (DCM) won the approval of Australia authorities to jointly acquire Australia Zircon NL.
In May, 2010, the Chinese listed company announced it would invest 40 million Australian dollars to set up the joint venture with DCM, giving itself a 51-percent stake in the scheme to acquire all of Australia Zircon NL s assets.
DCM, a major supplier of raw materials for steel makers in Europe, America, and the Middle-East, is the controlling shareholder of Australia Zircon NL. The latter firm is publicly traded on the Australian Securities Exchange and specializes in the exploration, mining and processing of zirconium ore. It has the exploration rights to 15,500 square kilometers in the Murray Basin, a major zirconium ore region in New South Wales.
Australia Zircon NL has an 80-percent stake in the world s largest monomer zirconium ore resource, called the WIM 150 project. If the project is completed, it will allow its owner to become the world s major supplier of zirconium ore.
According to arrangement, Orient Zirconic has the right to order Australia Zircon NL to transfer its assets into the joint venture under following conditions:
-Before the end of April 2011, the Chinese company could order Australia Zircon NL to transfer its entire asset s excluding the WIM 150 project into joint venture but including exploration right of 15,500 square kilometers in Murray Basin, the Mindarie zirconium ore project now under operation and a concentration plant with an annual capacity of 35,000 tons of zirconium ore concentrate.
-The stake in joint venture held by Orient Zirconic Ind Sic and Tech shall not be lower than 51 percent but not more than 65 percent, while Australia Zircon NL will own 35 percent of the joint venture.
-If the Chinese company made such a decision, the joint venture would pay 16.25 million Australian dollars for those assets as well as a 35-percent stake in the joint venture to Australia Zircon NL.
-Before the end of April, 2012, the Chinese company could order Australia Zircon NL to inject its WIM 150 project into joint venture, and the WIM 150 project worth 23.75 million Australia dollars and the 35 stake in the joint venture if that option is triggered.
If Australia Zircon NL inject both two assets into the joint venture, it will cost a sum of 40 million Australian dollars as well as a 35-percent stake in joint venture.
In May, 2010, the Chinese listed company announced it would invest 40 million Australian dollars to set up the joint venture with DCM, giving itself a 51-percent stake in the scheme to acquire all of Australia Zircon NL s assets.
DCM, a major supplier of raw materials for steel makers in Europe, America, and the Middle-East, is the controlling shareholder of Australia Zircon NL. The latter firm is publicly traded on the Australian Securities Exchange and specializes in the exploration, mining and processing of zirconium ore. It has the exploration rights to 15,500 square kilometers in the Murray Basin, a major zirconium ore region in New South Wales.
Australia Zircon NL has an 80-percent stake in the world s largest monomer zirconium ore resource, called the WIM 150 project. If the project is completed, it will allow its owner to become the world s major supplier of zirconium ore.
According to arrangement, Orient Zirconic has the right to order Australia Zircon NL to transfer its assets into the joint venture under following conditions:
-Before the end of April 2011, the Chinese company could order Australia Zircon NL to transfer its entire asset s excluding the WIM 150 project into joint venture but including exploration right of 15,500 square kilometers in Murray Basin, the Mindarie zirconium ore project now under operation and a concentration plant with an annual capacity of 35,000 tons of zirconium ore concentrate.
-The stake in joint venture held by Orient Zirconic Ind Sic and Tech shall not be lower than 51 percent but not more than 65 percent, while Australia Zircon NL will own 35 percent of the joint venture.
-If the Chinese company made such a decision, the joint venture would pay 16.25 million Australian dollars for those assets as well as a 35-percent stake in the joint venture to Australia Zircon NL.
-Before the end of April, 2012, the Chinese company could order Australia Zircon NL to inject its WIM 150 project into joint venture, and the WIM 150 project worth 23.75 million Australia dollars and the 35 stake in the joint venture if that option is triggered.
If Australia Zircon NL inject both two assets into the joint venture, it will cost a sum of 40 million Australian dollars as well as a 35-percent stake in joint venture.
