South China Resources

Agreed financing is of course a consideration, however US$8m does not seem a lot of money for a 53% stake is what may be a significant project.

Obviously too many unknowns at this stage, however we do know;
+ The company thinks the deal adds value or they wouldn’t have done it.
+ They say it will have “a significant impact on its business”,
+ From initial research it seems to be significant to China “The discovery of the Zhunuo deposit was selected as the second most important finding for the China Geological Survey in 2004.”

+ A second active project will reduce the risk of being a single-project company (although the JV with Xian Institute and Lingkou targets may also provide the same).

Additional thoughts;
+ The spend is not immediate, and will follow the Business Licence for the new JV. It may be a few months.
+ The SCR board have a strong financial background, with non-Exec Bruce Stewart previously being a financier in NY.