PERTH (miningweekly.com) – China’s Shandong Qixing Iron Tower has raised some $300-million as part of efforts to conclude the acquisition of ASX-listed Stonewall Resources.
In May, the junior gold developer entered into a conditional agreement with Shandong regarding the possible sale of its subsidiary Stonewall Mining for $150-million.
Stonewall holds a range of prospective assets, most of which are located in South Africa. These include several surface and near-surface gold mineralisations.
The company’s three key projects include TGME and Bosveld, in South Africa, and Lucky Draw, in New South Wales, Australia.
Shandong told its shareholders this week that the $300-million would be used to acquire two South African gold mining projects, to fund and execute several identified expansion and enhancement projects relating to the South African acquisitions, as well as to provide working capital and liquidity.
Sufficient capital had also been raised for the implementation of expansion projects to realise the mine's full potential and earnings ability, as well as substantially increase the resource and life of the mines, the Chinese firm said.
Shandong told shareholders that the expansion initiatives for Stonewall Mining would focus on improved processing, including metallurgical capabilities, such as roasting and BIOX, which would be beneficial for exploiting the considerable available mineral resource.
As a result of greater use of the rich external ore resources in the surrounding mining area, Shandong aims to substantially lift gold production and improve the overall earnings potential of Stonewall Mining.
“Shandong’s successful completion of their capital raising provides further evidence that they have recognised significant potential in Stonewall Mining.
“Their intention to direct substantial funds towards the expansion projects signals that they wish to ramp up production within a short timeframe. It is clear that they have developed an excellent understanding of Stonewall’s long-term strategy to feed central processing plants from the vast number of available mines and orebodies in the mining and prospecting areas,” said Stonewall CEO Lloyd Birrell.