Canada’s Quadra, Chinese firm in $2-billion copper mining JV

09 Mar 2010

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The greed for the world's natural resources by state-owned Chinese companies continues this year as well, as State Grid International Development Limited (SGID), a wholly-owned subsidiary of the country's largest utility State Grid Corporation of China (SGCC), yesterday signed a memorandum of understanding with Canadian miner Quadra Mining Limited (Quadra) to form a strategic joint venture company for copper mining in Chile.

 The JV will develop and operate Quadra's Sierra Gorda project and Franke mine and seek to invest in other prospective copper assets, initially in Chile, according to a statement released by Quadra yesterday.

''Quadra will contribute the Sierra Gorda project and the Franke mine, representing $900 million in assets, and SGID will contribute capital to each gain a 50 per cent equity interest in the strategic JV,'' the statement said.

Also, as part of the deal, SGID will acquire approximately 9.9 per cent stake or 10.9 million shares in Quadra for C$151.6 million ($147.4 million), at a price of C$13.91 per share through a private placement.

Further to the investment news, shares in Quadra surged 5.9 per cent to close at C$16.45 yesterday in Toronto. 

Vancouver-based Quadra is a resources company whose major assets include the Robinson mine in Nevada, producing copper and gold, the Carlota copper mine in Arizona, and the Franke copper mine in northern Chile.  Its development projects are Sierra Gorda copper-molybdenum mine in Chile and the Malmbjerg molybdenum mine in Greenland.

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