China's second largest iron ore mines operator China Vanadium Titano-Magnetite Mining Company Limited (China VTM Mining) has announced that its indirect subsidiary Sichuan Lingyu Investment Co. (Lingyu) has entered into an acquisition agreement to acquire the entire paid-up registered capital of China-based Panzhihua Yixingda Industrial Trading Co., (Panzhihua) for a consideration of at least RMB 600 million ($94.9 million).
According to China VTM Mining's statement, the consideration for the acquisition might increase depending on the volume of mineral resources and reserves in the mine. Panzhihua has a mine covering an area of 20.37 sq. km. located in Renhe District, Panzhihua City, Sichuan Province. The mine in question has an exploration permit valid from November 14, 2011 to December 31, 2013.
It is estimated that the mine has minimum resources and reserves of 100 million mt with an average iron content of 15 percent or above. Mining operations at the mine are expected to commence before December 31, 2014.