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China's Shandong Qixing Iron Tower has raised US$300mn to acquire two African gold mining projects from Australian firm Stonewall Mining, which belongs to Stonewall Resources
Stonewall’s three key projects include TGME and Bosveld in South Africa and Lucky Draw in New South Wales, Australia.
The Chinese firm will buy the two South African gold mines, expanding existing projects and providing working capital.
Shandong has said that US$300mn will be used to acquire two South African gold mining projects, to fund and execute several identified expansion and enhancement projects relating to the South African acquisitions, as well as to provide working capital and liquidity.
Shandong told its shareholders that the expansion initiatives for Stonewall Mining will focus on improved processing, including metallurgical capabilities, such as roasting and BIOX, which would be beneficial for exploiting the considerable available mineral resource.
Stonewall CEO Lloyd Birrell said, “Shandong’s successful completion of its capital raising provides evidence that it has recognised significant potential in Stonewall Mining.
“Its intention to direct substantial funds towards the expansion projects signals that it wishes to ramp up production within a short timeframe. It is clear that Shandong has developed an excellent understanding of Stonewall’s long-term strategy to feed central processing plants from the vast number of available mines and ore bodies in the mining and prospecting areas.”