MetalsTech jumps as company gets $3m boost from Hong Kong gold project developer Chifeng
Chifeng is headed by the former Chairman of Zijin Mining, a $58bn market cap Chinese metals giant
Source: iStock
Mentioned
KEY POINTS
- MetalsTech getting ready to boost its already existing 1.5Moz+ gold equivalent resource (includes silver)
- Placement made to Chijin International HK, also called Chifeng, sees the company becoming a 9% shareholder in MetalsTech
- Chifeng has a $7bn market cap in China and is listed in Shanghai
Slovakian-based silver and gold explorer MetalsTech Limited (ASX:MTC) shares were up 10% in the first hour of trades but have fallen back to breakeven.
The move comes as the company receives $3m from a Hong Kong-based and Shanghai stock exchange listed gold project developer with a $7bn market cap.
MetalsTech, through a placement to Chijin International HK (Chifeng), now has an enhanced funding base ahead of a slated mineral resource upgrade to the Sturec project.
Over 1.5Moz of gold and silver
That resource upgrade is no small consideration, given MetalsTech’s Sturec Project already boasts a resource over 1.5Moz of gold and silver combined.
In August, the company posted its first resource over 1Moz in the maiden Scoping Study for the project.
In September, it upgraded its mineral resource again as the company kicked off a new drilling campaign which continued to intersect gold all around the project.
The latest assays, received in November, confirmed areas of high-grade gold mineralisation present at the project.
Chifeng to become 9% shareholder
The deal also sees Chifeng come on board as a 9% shareholder in MetalsTech.
Chifeng’s standalone reputation is likely to attract some confidence in the play, as well as exposure to the broader Chinese investment space.
Chifeng is not only a $7bn market cap company in its own right but also one of China’s largest precious metals miners, headed by former President of Zijin Mining, Wang Jianhua.
Mr. Jianhua was also the Chairman of Shandong Gold.
All three companies are listed on major Chinese bourses.
Management impressed by Jianhua’s credentials
“Before becoming Chairman of Chifeng, Mr. Wang Jianhua served as CEO of $58bn capped Zijin Mining and before that, Chairman of $18bn capped Shandong Gold,” MetalsTech boss Gino D’Anna said.
“We are delighted that Chifeng continues to increase its ownership in our exciting company.”
MetalsTech owns the Sturec deposit which is located in the European Western Tethys geological belt, also home to a number of other mining companies—including Zijin.
A look at MetalsTech's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. MetalsTech was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.
