Precious Metals to receive $2 million in Chinese funding

THE BOURSE WHISPERER: Precious Metal Resources has entered into a cooperation and investment agreement with Jiangsu Geology and Engineering Co. Ltd. (SUGEC) of Nanjing, China.

The agreement will result in the Chinese company spending $2 million toward exploration on one of Precious Metals exploration licences (EL 7679) located 80 kilometres southeast of Armidale in New South Wales.

 

The Precious Metals Resources tenements in New South Wales. Source: Company announcement

 

SUGEC will fund exploration to be carried out on the exploration licence before 31 March 2014.

After this time SUGEC will then be entitled to a 30 per cent stake in the tenement.

“We are impressed with the geological and mineral potential of this project,” SUGEC general manager, professor Zhengyou Yu was quoted as saying in Precious Metal Resource’s announcement to the ASX.

“Working with PMR we are confident that we will develop a strong understanding of the geological structures and advance this project through to production.

“It will assist us in understanding overseas mineral exploration and development, which will promote the development of SUGEC and China’s mining industry.”