New | Mongolian Mining reveals approaches for joint bids in coal projects
Miner says it has been approached by other firms over joint ventures
Mongolian Mining Corp has been approached by independent parties to explore joint bids for coal projects in Mongolia, the Hong Kong-listed firm said on Friday.
The Mongolian government is inviting bids for coal projects in the eastern and western parts of the country’s Tsankhi region and has extended the initial deadline of October 31 to December 1, it said in a statement to the Hong Kong stock exchange.
An investment and cooperation agreement on these coal projects is expected to be signed between the winning bidder and a Mongolian state-owned enterprise by December 15. The bidder must be at least 51 per cent privately owned by a private operator or consortium with at least five years’ experience in coal mining.
Mongolian Mining said it is actively looking for long-term partners to expand to expand its business in China.
The company also plans to raise between HK$1.56 billion and HK$1.57 billion from a rights issue, the firm announced on Friday. It plans to issue between 5.56 billion and 5.60 billion rights shares, with three rights shares offered for every two shares held at 28 HK cents per share. The joint underwriters are JP Morgan and BNP Paribas.
“The rights issue is the preferred means for the company to improve liquidity and finance its general working capital,” the statement said.
Proceeds of the rights issue will be used to strengthen the mining firm’s capital base, expand the company’s load-out facility for railway, and increase the feed volume of its coal feed facility. Some of the funds will also be used to repay debt and replenish general working capital.
The first day of dealings in fully paid rights shares is on December 30.
