During the fourth quarter of 2009, CGMR announced the engagement of ABN AMRO Bank N.
At the end of the first quarter of 2010, CGMR obtained an independent third-party resource report drilled to internationally accepted Joint Ore Reserves Committee (JORC) standards from SRK Consulting for 208,000,000 tonnes of iron ore mineral resources in three categories at economic grades.
In 2010, CGMR plans to increase the magnetite concentrate production capacity to 600,000 tonnes per year, as processed from 2,400,000 tonnes of run-of-mine ore.
CGMR expects operating margins to remain robust as a result of the realization of significant cost savings from the expansion of existing operations.
95M under a consulting agreement which is payable by CGMR
subject to available cash flow from the operations of Sudan and XNS after London Mining has recovered its initial investment.
They were funded by CGMR
through a loan received from London Mining that will convert into London Mining's subscription for 50 percent of CGMR
's equity upon completion of the acquisitions of the PRC mining properties.
London Mining's obligation to subscribe for shares in the joint venture company is subject to the satisfaction of certain conditions, including, without limitation, the completion of its due diligence, incorporation of the joint venture company, transfer of the shares in CGMR to the joint venture company, and the satisfaction of the remaining conditions precedent in CGMR's contracts to purchase the Maanshan Xiaonanshan Mine and the Nanjing Sudan processing plant.
As a condition to London Mining's subscription in the joint venture company, Wits Basin will transfer to CGMR the right to acquire the Matang Project, which right is currently held by a wholly-owned subsidiary of Wits Basin.
CGMR has been approved by the Anhui government to operate a wholly owned foreign enterprise commonly known as a "WOFE" which is necessary in order to operate in the PRC.
To date, Wits Basin has loaned a total of approximately US $8 million to CGMR, which has been used to invest in the above-mentioned PRC projects.
To date, Wits Basin has provided CGMR capital in the form of loans in excess of US$8 million to secure rights to develop four various properties in the PRC.
CGMR has secured rights to develop or control the following properties in the PRC: