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.
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.
has now taken operational control of the assets and plans immediately to commence an extensive program to delineate further resources, improve productivity and reduce costs.
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.
On March 17, 2009, we announced that CGMR acquired two companies: Maanshan Xiaonanshan Mining Co.
The original seller of the Xiaonanshan mine and CGMR reached an agreement whereby all disputes as to any payments or claims will not be handled in a court system but rather through a process of arbitration.
In 2009, the PRC government mandated that CGMR purchase and consolidate two neighboring mines along with the existing mine into one single open-pit mining operation.
CGMR sought an investment banking firm for the task.
has an expansion opportunity, which it intends to pursue by entering into a non-binding Memorandum of Understanding to acquire a neighboring mine, which has additional resources and an existing production facility capable of processing 300,000 tonnes of iron ore concentrate tpa.
CGMR has purchased certain rights to acquire up to a 51% interest in the Taizhou Gold Mine which is currently in production on a cash flow positive basis.
CGMR is a British Virgin Islands corporation which has the right under certain agreements to acquire varying interests in gold, nickel and iron ore mining properties in the People's Republic of China ("PRC").