(MENAFN- ProactiveInvestors)
Limited () will look to invest in a Chinese silicon metal producer in a reverse takeover that would deliver 55% ownership of to the Chinese owners.
Like many ASX listed exploration companies has looked elsewhere to deliver outcomes for shareholders beyond the traditional mineral exploration model.
The binding share exhange agreement signed between and Global Dynamic Limited is for the partial acquisition of Global’s Silicon Metal smelting operations and mines in China.
For the 10 months to date Global has sold 23000 tonnes of Chemical Grade Silicon Metal and 21000 tonnes of Silica Fume for the 10 months year-to-date in 2014 which generated US$54 million according to the company.
will issue shares equating to 55% of the enlarged Group in exchange for 20% of Global’s silicon business and associated assets within China.
shareholders could gain dividends from the Global company if performance milestones relate to significant dividend distributions being paid to of at least $8 million and possibly in excess of $42 million in total are made.
After all conditions are met Global would hold 75% of the ’s shares.
Global employs over 700 people and sells silicon products to customers such as Dow Corning Shin-Etsu Chemical Co. and Wacker Chemie AG as well as supplying domestic Chinese markets.
Global is a 100% privately owned company that owns and operates two silica smelting complexes in China through its subsidiary companies located in Hubei and Gansu Provinces.
Completion of the transaction and agreement is subject to various conditions precedent including that shareholders of approving the deal.
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