5 Jan 2010 11:58

Tibet Summit to purchase mining assets from parent

Shanghai. January 5. INTERFAX-CHINA - Shanghai Stock Exchange-listed Tibet Summit Industry Co. Ltd. is to issue no more than 40 million non-public shares to fund the purchase of lead and zinc mining assets from its parent company Tacheng Xinjiang International Resources Co. Ltd., Tibet Summit announced on Jan. 5.

The new shares will be sold to institutional investors as well as Tacheng, and are expected to raise about RMB 480 million ($70.3 million). Tibet Summit plans to spend RMB 210 million ($30.76 million) on two lead and zinc mines in Tajikistan and a lead and zinc ore processing facility, with an annual ore processing capacity of 1 million tons, from Tacheng. The remainder of the funds will be used to repay debts and supplement cash flow.

Tibet Summit's share price ended at RMB 16.04 ($2.35) in Shanghai on Jan. 5, up 4.97 percent from the previous trading day.