SHANGHAI, Mar. 11 -- Metals X announced today that there is a further delay in completing a deal to form a 50:50 joint venture with Yunnan Tin Group and partners to control its Tasmanian tin assets. Trading in Metals X shares on the Australian Stock Exchange was suspended yesterday pending the announcement. The joint venture will include the Renison mine and concentrator, the Mt Bischoff mine and the Rentails tailings project.
The formation of the joint venture – under which YTG would pay A$50 million for its stake - was first announced last July, but completion of the deal was initially delayed by the need to obtain government approvals in Australia and China. Joint venture documentation was eventually signed on 28 January, with final settlement due on 1 March, subsequently changed to 9 March. At that point YTG was partnered with Parksong Mining and Recycling Company of Hong Kong for its share of the joint venture in YT Parksong Australia Holding Pty Ltd (YTPAH).
In a statement Metals X said the settlement yesterday "did not proceed due to YTPAH encountering issues with the timely transfer of part of the settlement funds... On the basis that YTPAH has informed Metals X that these issues are likely to be resolved within the next two weeks, the Company has agreed to a 45 day extension to enable sufficient time for YTPAH to finalise arrangements. YTPAH has advised Metals X that settlement is currently planned to occur before 18 March."