Tiomin Resources pleased to announce that has taken an important step forward and signed an investment agreement with Jinchuan Group Limited, one of the largest mining companies in China. Approval of investment, 70 percent of Jinchuan offers in Tiomin Kenya Limited. It is expected that the mining company, Jinchuan will invest $ 25 million on mining projects owned by Tiomin Kenya.

A statement from the Canadian-based mining company, Tiomin, received in Nairobi Wednesday, Jinchuan said gain controlling equity interest in Tiomin Kenya, a wholly owned subsidiary of Tiomin has a 100 percent Kwale Mineral Sands Project in Kenya.

Canadian and Chinese companies hoping to mine an average of 330,000 tons of titanium-bearing ilmenite, 77,000 tonnes of Rutile and 37,000 tonnes of zircon per year from the Kwale Mineral Sands site.

The statement said all net cash flow generated by Kwale will initially be used to pay debts and after that project’s free cash flow net will be distributed pro rata to 70 percent of Jinchuan and Tiomin to 30 percent.

“The transaction is expected to close in about two months and subject to regulatory and shareholder approval,” the statement said.

Jinchuan is China’s largest nickel producer and the fourth largest copper producer.

“Closure is the main agreement, which has so long and painful gestation period, will be a key event for Tiomin. We believe that the closing conditions can be met within the next two months,” said Robert Jackson, Tiomin CEO.

“In addition, closing the transaction with Jinchuan will provide more flexibility to pursue strategic Tiomin enhance a strong cash position and management team to find and run an accretive, corporate transaction.”

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