Jinchuan To Increase Stake In Tiomin For Kenyan Titanium Project

Jinchuan to increase stake in Tiomin for Kenyan titanium project

Jinchuan Group Ltd. is increasing its stake in Toronto-listed Tiomin Resources Inc. to 20 percent through investing an additional CAD $10.9 million ($10.21 million), according to a Tiomin announcement released on June 12. The investment will be used to fund the company's titanium project in Kenya.

Jinchuan has also been granted an 18-month option to increase its stake in Tiomin to 30 percent by subscribing to additional shares at a per-share-price of CAD $0.35 ($0.33), which, if exercised, would generate an additional CAD $17 million ($15.9 million) in cash resources for Tiomin.

Jinchuan is China's largest producer of nickel, cobalt and platinum, specialising in mining, smelting, refining and chemical engineering.

Jinchuan's other African project is the Munali Nickel Mine in Zambia, which is a joint-venture project with Albidon Ltd., an Australia and London-listed mining company. Jinchuan is currently planning to construct a nickel smelting plant for the Munali project, pending feasibility study results.