CHINA’S Heilongjiang Heilong Resources recently announced an investment of 30 million Australian dollar, about N$271 million, in a local copper mine of International Base Metals Limited (IBML).
IBML, an Australian-based mining company, is the owner of the Omitiomire deposit, which is believed to have about 700 000 tonnes of copper.The Omitiomire deposit is located about 120 kilometres north-east of Windhoek.Managing director of IBML, Frank Bethune, was quoted on the company’s website on Friday as saying that the deal has been in the pipeline since last December.’Following the formal process undertaken by the IBML Board to secure a cornerstone investor, which began in December 2011, we are delighted to have attracted a partner of the calibre of Heilong. We believe that together, the funds from Heilong and their expertise in bringing mines into production will be an impetus for driving value for all IBML shareholders,’ Bethune said.Bethune explained that the use of the proceeds is likely to include the establishing of an Omitiomire Phase One oxide copper mining and processing operation; expanding the Omitiomire resource and/or regional drilling; selective farm-ins to other exploration assets in Namibia and the region; and general working capital.Heilong is a privately-owned Chinese mining company with copper and gold operations named Baoshan, Tongshan and Duobaoshan located in the Heilongjiang Province in China.Heilong already holds a 6% stake in IBML, and enjoys close ties with West Minerals, which holds a further 30% interest in the company.Following the deal, Heilong and West Minerals will hold a combined 53,9% controlling stake in IBML.- Nampa
