China Century Capital (ASX: CCY) has signed a Memorandum of Understanding with Minatek Pty Ltd to purchase 60 percent of its interest in Heng Sheng Mining Corporation (HSMC), a major iron ore operation in the Philippines.
China Century Capital, a private equity investment company focused on the rapidly growing economy of Asia, is to acquire close to one percent of the HSMC from Minatek as part of the initial agreement.
Negotiations on the financial details of the deal are still ongoing.
The fifty-fifty JV company, the Leyte Ironsand Corporation, has access to 197 million tonnes of indicated resources and 6.86 million tonnes of measured resources of magnetite iron sand.
The Heng Sheng Mining Corporation has already embarked on a joint venture with the Filipino Nicua Corporation. This gives China Century Capital managing director Dan Kao confidence that the partnership will be “mutually beneficial”.
Kao said this facility is “very close” to production and negotiations are already underway with potential steel manufacturing export partners in China, and other Asian countries.
The agreement is an important step for China Century Capital as it seeks to capitalise on emerging mining & resources opportunities, particularly in the Asian region.