Chinese investment group Poan Holdings (PGH) has become the biggest shareholder in Lincoln Minerals, buying 20 million ordinary shares for a cash payment of Aus$1.8 million. The direct investment agreement results in a 13% share for PGH.
While both parties have agreed that the placement shares be voluntarily escrowed for 12 months from the date of issue, the immediate injection of funds will pay for Lincoln’s completion of a mining lease application and obtaining groundwater licences, as well as all the approvals for stage one of the company’s 100%-owned Gum Flat iron ore project in South Australia.
Lincoln says the investment will also go towards two new projects on South Australia’s Eyre Peninsula. The company wants to define the extent of its Minbie copper-lead-zinc-silver discovery near Cowell and continue exploration activities at the Nantuma iron ore exploration licence.
Lincoln’s managing director Dr John Parker says, “Lincoln welcomes the investment by Poan Group Holdings and looks forward to working with our new major shareholder to develop company opportunities in iron ore, copper-lead-zinc-silver and graphite in South Australia’s Eyre Peninsula for the benefit of all shareholders.
In other news, Lincoln has appointed the chief executive officer of PGH to its board of directors. Sze Wan Chan is a non-executive director. “Ms Chan is a Fellow of the Hong Kong Institute of directors but has spent years in mainland China developing business interests. She has extensive connections and significant experience in green energy, natural resources, corporate planning and investor relations,” says Dr John Parker.