China Nonferrous Metal increases stake in Terramin


SHANGHAI | Sun Jul 31, 2011

SHANGHAI Aug 1 (Reuters) - China Nonferrous Metal Industry's Foreign Engineering and Construction Co said on Monday that it would increase its stake in Australian miner Terramin Australia Ltd in a deal worth 32.35 million yuan ($5 million).

Terramin will sell 12.3 million shares to China Nonferrous Metal at A$0.37 ($0.406) apiece in a private placement that would increase the holdings of the Chinese developer of non-ferrous metal resources to 19.86 percent from 14.38 percent, according to a statement to the Shenzhen Stock Exchange.

Terramin will use the share sale proceeds to develop two zinc and lead mining projects, the statement said.

Terramin posted a loss of A$9.875 million last year and its assets totalled A$147 million.

Chinese companies have been eager to secure supply of raw materials through overseas acquisitions to meet rising domestic demand in the world's fastest-growing major economy. ($1 = 6.437 Yuan) ($1 = 0.910 Australian Dollars) (Reporting by Samuel Shen and Melanie Lee; Editing by Jonathan Hopfner)


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