LG helps leading Chinese mining company forge long term relationship with AIM Listed Ridge Mining
16 October 2006
Zijin Mining Group subscribes for £8.2 million in shares and warrants in Ridge Mining
LG, advised new client Zijin Mining Group Company Ltd ("Zijin") on the £8.2 million subscription by a subsidiary of Zijin for 16 million new ordinary shares (approximately 20% of the share capital) of Ridge Mining plc ("Ridge") and warrants to subscribe for up to 10 million new ordinary shares.
Ridge is an AIM listed company with exploration projects in South Africa. Zijin is a Chinese resource company listed on the Hong Kong Stock Exchange with a market capitalization of approximately US$5.2bn. Zijin is one of China's leading mining groups principally engaged in the exploration, mining, production, refining and sale of gold and other mineral resources in China.
LG corporate partner Victoria Younghusband and associate Farhod Moghadam advised Zijin on English law aspects of its subscription. In Hong Kong, Zijin was advised by partners Julia Charlton and Ernest Chung and associates William Brophy and Gerald Pasquier of Charltons. Cutfield Freeman were the corporate finance advisers to Zijin.
Victoria Younghusband said: "We are delighted to have acted for Zijin on this transaction which demonstrates the keen interest of Chinese companies in AIM and is also an important strategic step for Zijin in its objective of increasing its resources and production base overseas."
The transaction is subject to the approval of Ridge shareholders at an EGM on 30 October.
Notes to editors
- LG is a London-based corporate law firm advising growth market clients internationally who seek to raise capital for business ventures.
- LG has advised on over 190 AIM transactions, helping clients to raise over £1.5 billion in new funds.
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Victoria Younghusband
+44(0)20 7759 6612