Major Deals This Week: Rio Tinto, Moly Mines, Bryn Resources, and More

18 March 2010 (Last Updated March 18th, 2010 18:30)

In major deals this week, Australian miner Rio Tonto and China-based Chinalco have said they will jointly develop a large iron ore field in Africa with Chinalco acquiring a 47% stake in the Simandou project in Guinea. The Simandou mine is estimated to contain 2.5 billion

In major deals this week, Australian miner Rio Tonto and China-based Chinalco have said they will jointly develop a large iron ore field in Africa with Chinalco acquiring a 47% stake in the Simandou project in Guinea.

The Simandou mine is estimated to contain 2.5 billion tons of iron ore and could produce 200 million tons annually.

Moly Mines said that its Chinese investor, Hanlong Mining Investment Pty, has obtained Chinese Government approval for its proposed $200m equity and debt investment.

With the approval in place, Moly Mines will issue 207.1m shares for $140m to Hanlong, and the partners will re-commence the development of the Spinifex Ridge molybdenum project in Western Australia.

In addition to the equity investment, Hanlong will also provide Moly Mines with a ten-year, $60m working capital facility and subsequently become Moly Mines' majority shareholder.

Meanwhile, Bryn Resources has acquired 100% of the rights to 53 claims on a 2,100-acre historical gold property in Wine Harbour District of Nova Scotia, Canada.

Bryn now plans to commence drilling and extraction at the property.

The claims have plans to acquire and consolidate four additional coal mines located in Huozhou County, central Shanxi Province.

Puda Coal says it plans to acquire and consolidate four additional coal mines located in Huozhou County, central Shanxi Province.

Following completion of the consolidation, the project is expected to increase the annual capacity from 720,000t to 900,000t as four existing coal mines are made into one, of which equity owner Jianhe Coal will hold 82% equity.

The four target coal mines are Shangxi Huozhou Leijian Coal, Shanxi Huozhou, Shanxi Huozhou Jianzhuang and Shanxi Jianhe Coal.

And lastly, Phoenix Coal has entered into a definitive agreement to sell the Gryphon reserve, which comprises the property leases controlled through the acquisition of Pact Resources, LLC and the Petersburg sublease, and certain other associated assets to a major US coal producer.

The proceeds from the Gryphon Asset sale are worth $23m.