Weather New York, NY +71°F

Regions

Xanadu to acquire copper-gold project in Mongolia for $14M

Close
(Credit: Xanadu Mines) This image file contains the company logo of Mongolian exploration company Xanadu Mines.Xanadu Mines
February 3
11:31 AM 2014

Xanadu Mines and its joint venture partner Mongol Metals have entered an agreement to acquire a 90% stake in the Kharmagtai copper-gold exploration project in Mongolia. The said project will be purchased from Turquoise Hill Resources for $14 million, according to Proactive Investors.

Noble Group will be funding the deal with a three-year loan agreement worth $4 million, plus equity in Mongol Metals worth $4 million from Xanadu as initial consideration. The transaction is subject to approval by the shareholders of Xanadu, the report detailed.

Under the terms of the said deal, Mongol will shell out $4 million as initial consideration, plus $10 million in deferred consideration to be paid over 18 months, the report added.

Xanadu has pledged to spend around $900,000 until completion in order to earn a circa 18% interest in its joint venture company. The firm has the right to gain a minimum of 85% of Mongol Metals by funding the costs of exploration and acquisition, the report explained.

In early January, Xanadu has acquired the Oyut Olaan project for a combination of $600,000 in cash and 5 million Xanadu shares, Proactive Investors reported.

© 2019 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics