Pala Investment Holdings is proceeding with the acquisition of a stake in Asian Mineral Resources, purchasing 108 million of the company’s shares for a $6.5 million payment.
This new stake will bring Pala’s share in AMR to 50.7% and is expected to lead to an acceleration of mine development at the company’s Ban Phuc nickel-copper project in northern Vietnam.
AMR’s chairman Bill Howell says, “We are delighted that Pala has decided to proceed with the proposed investment in the corporation and look forward to working together in advancing the Ban Phuc project. We firmly believe that Pala will be a valuable partner to AMR and is committed to assisting in securing all necessary resources for the development of the Ban Phuc Project.”
AMR holds a 90% interest in the project through Ban Phuc Nickel Mines (BPNM), which placed it on care and maintenance as a result of the global financial crisis.
AMR’s director Robin Widdup says, “Our Board and management have been working hard for the past year to deliver a transaction that will enable AMR to complete the Ban Phuc project and exploit the further potential that exists in the area covered by the Ban Phuc project investment certificate.
“We believe that Pala brings the necessary technical, operational and financial expertise to support this objective.”
AMR believes this new investment will speed up mine construction which was a point of concern for the Vietnamese General Department of Geology and Minerals earlier this year.
In other news, the company has announced the appointments of James Askew, Jan Castro and Michael Brown as non-executive directors. All three have considerable experience in the international mining sector.