Friday, March 26, 2010

China Sci-Tech acquires Peruvian copper property

China Sci-Tech has announced its acquisition of Canadian listed Chariot Resources Ltd. for $ 232 million. The Hong Kong-based company is also acquiring Queensland Lady Annie copper project from Cape Lambert Group.

Chariot owns 70% of the Marcona copper property which has the Mina Justa project in southern Peru. Marcona covers over 32.000 hectares and comprises five prospects with Mina Justa project as the principal exploration and development prospect.

Owen Hegarty, former founder of Oxiana Ltd. which was absorbed into OZ Minerals Ltd, is currently vice chairman of China Sci-Tech's subsidiary G-Resources Group Ltd. (HKEx: 1051).

On completion of the transaction he will be executive director and vice chairman of CST, while Damon Barber former Managing Director and Head of Metals and Mining Asia for Deutsche Bank will become CEO.

"The acquisitions represent a major strategic step made by the company to transform into a leading copper mining company. Going forward, we will continue to look for quality investment opportunities copper Aiming to further enhance shareholder value," said CST chairman, Tao Chiu, as quoted by mineweb.

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