- Asaplus Resources’ (AJY) Datian Huasheng Mining entered into an agreement with Zhangzhou Wen Herui Trading for the sale of its holding in Datian Huayu Mining
- Under the agreement, Datian will sell its holding for CNY$5.9 million (A$1.1 million)
- The sale is expecting to be completed by April 15
- Asaplus says the disposal of Datian Huaya will allow the company to invest more time in the development and operation of the Beikeng Mine
- On market close for the day, Asaplus is in the grey and trading at 12 cents per share
Asaplus Resources’ (AJY) Datian Huasheng Mining is set to sell its holding in Datian Huayu Mining to Zhangzhou Wen Herui Trading.
Under the agreement, Datian will sell its holding for CNY$5.9 million (around A$1.1 million).
The parties are expecting the purchase to be completed by April 15.
The terms of the agreement after arrived at arms-length negotiations between the companies on a willing buyer and willing seller basis.
Asaplus says the disposal of Datian Huaya will allow the company to invest more time in the development and operation of the Beikeng Mine.
Beikieng is an iron ore tenement, located around 20 kilometres from the city Datian, within the Fujian Province in the People’s Republic of China. Asaplus has and 80 per cent interest in the project.
Notably, mineral resources within Datian County are relatively rich, with abundant coal, iron ore and smaller copper, lead, zinc and manganese deposits as well as kaolin.
By Australian standards, the size of the iron ore deposits are small and usually lower grade, but generally the ore can be brought up to an acceptable grade.
On market close for the day, Asaplus is in the grey and trading at 12 cents per share.