NDRC Approves Zhongjin Lingnan to Buy out Goldstar

Dec. 8, 2010 (China Knowledge) - Shenzhen Zhongjin Lingnan Nonfemet Co Ltd<000060>, the third-largest zinc producer in China, yesterday announced that it has secured approval from the National Development and Reform Commission, China's top economic planner, to acquire entire equities of Canada-based GlobeStar Mining Corp at a consideration cost of around RMB 1.19 billion.

In a statement filed with the Shenzhen Stock Exchange, the company said that Australia-based Perilya Ltd, a subsidiary 52% owned by the Shenzhen-listed firm, signed a letter of intent with GlobeStar Mining on Oct. 7 to purchase 111.5 million shares of the target firm for C$1.65 apiece.

GlobeStar Mining principally operates business in Dominica and Canada, and its mineral reserves comprise 640,000 tons of copper, 1.37 million ounces of gold, 14.25 million ounces of silver, 93,000 tons of nickel and 80,000 tons of Lithia.

Perilya owns reserves in the Beltana zinc mine in South Australia and in the Broken Hill zinc, lead, silver mine in New South Wales and Australia, sources reported.

Shares of Zhongjin Lingan rose 1.77% to close at RMB 20.68 yesterday.