HONG KONG, Nov 16, 2009 - (ACN Newswire) - Green Global Resources Limited ("Green Global" or the "Company")(SEHK: 61) is pleased to announce that North Asia Resources Group Limited ("NAR"), has entered into strategic partnership with China Railway Mongolia to jointly develop the Oyut Ovoo mine. The Group has recently completed a technical valuation exercise on the "First Mine Area" of Oyut Ovoo mine, measuring 1 km2 out of the total concession area of 12.01km2. The Independent Technical Report ("ITR") completed by SRK Consulting China Limited estimated a total JORC-equivalent Measured, Indicated and Inferred resources of 148.9 million tons of iron resources and 180,000 tons of copper resources in the First Mine Area alone (which covers only approximately 8.33% of the total mine area).
|Green Global Forges Mining Partnership with China Railway Mongolia|
The Oyut Ovoo mine is 90% held by NAR and 10% by China Railway Mongolia. According to the terms of the Transportation Agreement and the Off-take Agreement and transportation agreement executed on November 13th, 2009, China Railway Mongolia will purchase no less than 1.5 million tonnes per annum of the mine's output at prevailing market prices and provide transportation services for the mine's output of no less than 2.5 million tonnes per annum to Erenhot. The term of both the Transportation and Off-take agreement is for an initial period of ten years. Green Global, together with NAR, is the first and only strategic partner of China Railway Mongolia for such an undertaking.
According to the ITR completed by SRK Consulting, the First Mine Area of Oyut Ovoo mine, has iron-ore resources with an average grade of approximately 40% and copper resources with an average grade of approximately 0.51%. The estimated value of only the iron-ore resources in the First Mine Area is approximately HK$2,272,000,000.
The Company expects to obtain the mining license by end-2009 and begin production in the second half of 2010.
Mr. Michael Tse, Chairman of Green Global, said, "We are more than pleased to find that the mine has such immense potential, the resources in it have far exceeded our initial estimates. We look forward to unlocking the value of the mine and turning it into great returns for our shareholders."
Mr. Yang Xiao Qi, Managing Director of China Railway Mongolia, said, "Transportation is critical to the successful operation of the resources businesses in Mongolia. We are confident that this alliance brings together our best elements, plus the immense resources at Oyut Ovoo mine, creating extraordinary returns for the three companies."
Mr. Joseph King, Chairman of North Asia Resources, said, "With the support of China Railway Mongolia in transportation and offtake, as well as the rich resources of the Oyut Ovoo, we are well prepared to commence production next year."
Mr. Tse concluded, "With the confidence and trust of such a strong partner, we are on very solid foundation to develop our new mining resources business which will bring great benefit to the PRC, Mongolia and also the Company and its shareholders."
Green Global made the milestone move in July to acquire the entire 100% equity interest in NAR.
Note: All figures are approximates
About North Asia Resources Group Limited
North Asia Resources Group Limited ("NAR") owns a 90% equity interest in Golden Pogada LLC, which holds the Exploration License in the iron-ore mine in Oyut Ovoo, Mongolia. China Railway Mongolia Investment LLC acquired the remaining 10% of the equity interest of Golden Pogada on 31 July 2009. Subsequently, NAR has entered into a JV agreement with China Railway Mongolia. According to the JV agreement, China Railway Mongolia will be responsible for all the logistics and transportation arrangements for the Mine's output from Mongolia to the PRC and will also underwrite all the output, including the iron ore and, if any, other minerals ores, to be extracted by Golden Pogada from the Mine.
About China Railway Mongolia
China Railway Mongolia ("CRMI") is principally engaged in natural resources and railway development, investments and infrastructure construction in Mongolia and is a subsidiary of China Railway Resources Co., Ltd. ("China Railway Resources") China Railway Resources has substantial investments and expertise in ferrous and non-ferrous metal industry and other resources and allocations in China and worldwide.
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Topic: Business Tieup
Source: Green Global
Sectors: Metals & Mining
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