Pilbara nickel explorer and producer, Fox Resources Ltd today announced that China's largest nickel producer, Jinchuan Group Ltd, has successfully concluded a strategic agreement to take an equity stake in the company.
Fox has now received all funds from Jinchuan totalling A$17,860,000.
Under the agreement, Jinchuan will subscribe for 18,800,000 fully paid ordinary shares in Fox at a premium issue price of A$0.95, representing a 61% premium to the closing price ($0.59) of Fox shares on 16 April 2008.
As a result, Jinchuan will own 11% of the issued shares in Fox.
Jinchuan will be issued a further 8,000,000 attaching options exerciseable at A$1.20 expiring
12 months after the issue of the 18,800,000 fully paid ordinary shares.
The funds raised from the issue will be applied to development of the Company's nickel projects, process improvements to the Radio Hill mill and the acceleration of nickel exploration on the 3,000km2 of tenements accessible to Fox.
Fox Resources Managing Director, Mr Don Harper, said the subscription of shares at a premium is a significant vote of confidence in the Company's operations, management team and base metal exploration potential.
"We welcome Jinchuan as our largest shareholder and we look forward to strengthening the
relationship between the two companies," said Mr Harper.
