Jinchuan Board Approves Tiomin Kenya Purchaseadmin
Tiomin Resources Inc. announce that the board of directors of Jinchuan Group Limited (‘Jinchuan’) has approved the Memorandum of Understanding (‘MOU’) in which Jinchuan acquires 70% of Tiomin Kenya Limited (‘TKL’), a wholly owned subsidiary of Tiomin that owns 100% of the Kwale Mineral Sands Project (‘Kwale’ or ‘the project’), for US$25 million invested into TKL.
Jinchuan’s board also authorized its management to cooperate with Tiomin to finalize the definitive documentation and address any related issues. This positive step sets the stage to close the transaction by November 1, 2008 as anticipated in the MOU and announced on July 29, 2008.
Under the terms of the MOU, Jinchuan will procure all financing, on normal commercial terms, to develop Kwale. Additional information regarding the transaction is contained in the July 29th press release: ‘Tiomin and Jinchuan sign agreement to develop the Kwale Titanium Project’.
Mr. Robert Jackson, CEO of Tiomin, commented “We are making good progress with many of the steps required to close the transaction on schedule. However, Tiomin and Jinchuan have made it clear in writing to the Government of Kenya (‘GoK’) that it must complete the outstanding Conditions Precedent that caused Tiomin’s last attempt to finance and develop Kwale to fail. Wrong and misleading information, attributed to GoK officials, claiming that Tiomin has insufficient cash resources and the GoK has completed all the required actions, routinely appear in the media in Kenya. These claims are grossly incorrect. Jinchuan’s funding and building of the project is dependent upon the GoK honouring its commitments. The responsibility for success or failure now rests firmly with the bureaucrats of the GoK who must complete their work for the deal to close”.