【The Australian】China deals keep coming

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China deals keep coming                                                                                                
http://www.theaustralian.news.com.au/business/story/0,28124,25819454-5018066,00.html                                            
                                
THE DIRT: Matt Chambers | July 22, 2009              
Article from: The Australian                                                
                                                                                                                        

DEALSwith state-owned Chinese companies are continuing even in theoft-maligned zinc and lead sector, despite the detention of Rioexecutive Stern Hu in China for alleged bribery and stealing statesecrets.

There were understood to be more thanseven mining joint ventures under discussion when Mr Hu was detained onJuly 5, and at least one of those is pushing on.

China’sShaanxi Non-Ferrous Metals is taking a $10.5 million punt on the moveby minnow Meridian Minerals to acquire the closed Lennard Shelf zincand lead mine in Western Australia’s Pilbara region, from Xstrata andTeck Cominco.

For its cash, Shaanxi, through its fully ownedsubsidiary Northwest Mining and Geology Group, will get 131.25 millionshares at 8 cents each (a 23 per cent premium to the share price beforethe deal was announced) and 45 per cent of Meridian.

Theplacement is subject to Australian and Chinese government approvals andMeridian’s acquisition of Lennard Shelf, which it can do after duediligence by issuing 100 million shares to Xstrata and Teck.

Meridian shares were recently up 12 per cent at 7.5c.

Extract hits record

SEPARATELY, shares in Namibia uranium play Extract Resources jumpedto a record after the company issued a maiden resource for RossingSouth Zone 2, which, as you would expect, is very close to Rio’sRossing uranium mine and explains Rio’s 15.2 per cent stake in Extract.

Rossing South resources are now at 267 million pounds, which is bound to keep the takeover speculation running hot.

Extract was recently up 28c at $7.26.

Thewriter implies no investment recommendation and this report containsmaterial that is speculative in nature. Investors should seekprofessional investment advice.

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