Xanadu finalises Noble JV in Mongolia

Mongolian-focused Xanadu Mines Ltd has finalised the terms of an alliance with Noble Group that will give the Hong Kong-based commodities trading house a 9.9 per cent stake in the minerals explorer.

Xanadu shares had jumped six cents, or 10.71 per cent, to 62 cents by 1403 AEST.

Xanadu and Noble's 50:50 joint venture company will explore and develop coking coal, iron ore and ferro alloy projects in Mongolia.

Xanada's existing assets will not form part of the alliance.

"The initial focus of the joint venture will be the pursuit of a number of opportunities already identified," Xanadu said in a statement on Thursday.

Xanadu will place up to 9.68 million shares with Noble at 69.89 cents each, worth $6.7 million.

Funds from the placement, together with a similar amount contributed to the joint venture by Noble, will be applied to opportunities in Mongolia, Xanadu said.

"The alliance ... will also allow Xanadu to continue to advance its existing Galshar and Khar Tarvaga thermal coal deposits and its copper gold assets in north west Mongolia and south east Gobi," Xanadu chairman Brian Thornton said.

Source:ninemsn.com.au