Solartech Int'l to buy Mongolian mine for HK$1.5 bln

Dec. 2, 2009 (China Knowledge) - Solartech International Holdings Ltd<1166> has announced that it plans to acquire a mine in Ulaanbaatar, the capital of Mongolia for HK$1.5 billion, sources reported.

The Hong Kong-listed firm will pay RMB 68 million in cash and will pay the remaining HK$1.43 billion by issuing convertible bonds. The bonds will have an initial conversion price of HK$0.15, which is a price 7.14% higher than the HK$0.14 the closing price before shares of the firm were suspended from trading.

The mine, which has 1.44 million tons of copper reserves, 4.19 tons of gold reserves and 196.34 tons of silver reserves, is expected to produce 5,000 tons of copper in its first year at a cost of HK$178 million. In its second year, it will produce an estimated 30,000 tons of copper at a cost of HK$69.75 million.

Solartech International, a firm incorporated in Bermuda, is engaged in the manufacture and trading of cables and wires, copper rods and connectors and terminals.



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