Toronto-listed miner Tiomin Resources has announced that 99,68% of the votes cast by ballot at its recent annual and special general meeting were in favour of the previously announced investment in the company by Jinchuan Group, of China.



In the approved transaction, Jinchuan will acquire 7 212 134 common shares of Tiomin Resources at C$0,15 a share, for a total of C$10,9-million, increasing Jin-chuan’s interest in Tiomin to 20%.



In addition, the transaction grants Jinchuan an 18-month option to increase its interest in Tiomin to 30% by subscribing for additional common shares at C$0,35 a share.



“This transaction and these appointments significantly strengthen Tiomin, as we rebuild shareholder value in the company”, says Tiomin executive chairperson Jean-Charles Potvin.



Tiomin and Jinchuan entered into a memorandum of understanding, in which the financing was subject to regulatory and Tiomin-shareholder approval, to finance and expedite the development of the Kwale mineral sands project, in Kenya.



Tiomin says that the agreement demonstrates that both companies are united in their desire to jointly develop Kwale, and the financing will start an accelerated development programme with potential cost savings by maximising the Chinese input.



“Jinchuan is a world-class mining company with extensive project-development experience and it is an ideal partner for Tiomin and Kenya. This agreement is a very logical step as we build Tiomin into a global titanium producer, and it confirms our belief that the Kwale project has significant merit that is not recognised in Tiomin’s share price. Our stronger balance sheet and the support of Jinchuan will enable Tiomin to pursue the acquisition of additional titanium assets worldwide,” adds Potvin.

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