DetailsBC-MagIndustries-China, 2nd Writethru
code:2
INDEX: Mining, Business
SYMBOL:TSX:MAA
HL:MagIndustries signs framework agreement with new Chinese partner
COMPLANT for potash project
THE CANADIAN PRESS
TORONTO -- Toronto-based MagIndustries Corp. (TSX:MAA) has signed
a framework agreement with a Beijing-headquartered construction
company, which is negotiating to build the proposed Mengo potash
project in western Africa.
The agreement provides for COMPLANT to be appointed contractor
for the project and for it to source a construction loan of up to
US$1.2 billion, repayable over 10 years or more.
COMPLANT would have the option to acquire 50.1 per cent of the
project, if the two companies reach a definitive agreement.
If the Chinese company exercises its option, MagIndustries would
see its ownership stake fall to 39.9 per cent from 90 per cent while
the Republic of Congo would continue to own 10 per cent.
COMPLANT was formed in 1959 to build complete manufacturing
plants in China and abroad. It's now a publicly traded company
controlled by China's State Development & Investment Corp.
07:47ET 01-02-10