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04:31 Sep 28 2011

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Tibet Mineral Development Company plans additional share issues for 1.5 bln yuan
11:01, May 07, 2010  

Tibet Mineral Development Company plans to issue 68.7 million extra A-shares to designated ten principal shareholders at a purchase price of 21.89 yuan per share for 1.5 billion yuan (219.73 million U.S. dollars).

The proceeds from the additional share issues will be used for the development of the company's lithium resources and construction of copper mine, according to an announcement made by the company on Friday.

The Shenzhen-listed company intends to use 964 million yuan of the raised fund to develop the Tibet Zabuye Lithium Technologies Co., Ltd.'s projects for technical transformation and further development.

The Tibet Zabuye Lithium Technologies Company, a major subsidiary of Tibet Mineral Development Co.,Ltd., has ceased its operation for many years due to heavy debts.

Zabuye Salt Lake, located at Zhongba County, southwestern Tibet, ranks first in China in terms of lithium reserves and is contracted to the company for 20 years.

The Tibet Mineral Development Company said that the first phase of Zabuye project, which went into operation in September of 2004, is designed to have an annual production capacity of 5,000 tons of lithium carbonate products.

However, the project could not reach the designed capacity for various reasons, including fund shortages. With further development, the company will achieve an annual production capacity of 8,000 tons of lithium carbonate products.

The company will also invest in the expansion of the Tinggong Copper Mine in Nyemo County, Tibet's capital of Lhasa, and undertake the electrolytic copper project to turn out 5,000 tons annually, according to the announcement.

Statistics show that chromite mine has contributed the lion's share of revenue to the company's total earnings, 69.62 percent of the total in 2009. Lithium and copper mines currently make an insignificant contribution to the company.

Source: Xinhuanet


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