Weatherly International plc (WTI.L) announced the signing of a Letter of Intent or 'LOI' with a wholly owned unit of East China Mineral Exploration and Development Bureau or 'ECE', whereby the parties plan to jointly pursue the development of Weatherly's Berg Aukas lead/ zinc mine in Northern Namibia.
According to the MOU, it is intended that the parties would form a new company, whose primary asset would be the Berg Aukas mine and which would seek the admission to trading of its shares on the AIM market of the London Stock Exchange.
It is intended that ECE would provide funding of £4.8 million to purchase an interest of 65% in NewCo, the company said. The parties hope to conclude the proposed transaction before the end of 2010.
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