China’s Shenlong International Investment (ASX: SLI) has set its sights on Australian shores and is currently in the IPO phase, with an ASX listing set down for 17 June 2013.
The company is offering 60 million Chess Depositary Interests at $0.20 each to raise up to A$12 million.
Guangdong-based Shenlong has a 90% interest in two polymetal exploitation permits covering 372 square kilometres in the Republic of Congo via its wholly owned subsidiary Société Lulu De Mine.
The two exploitation permits comprise the 230 square kilometre M’Passa-Moubiri exploitation permit and the 142 square kilometre Mindouli exploitation permit.
Through the acquisition of Société Lulu De Mine, Shenglong has gained access to a copper region with sub-mineralisation in lead, silver and zinc.
Société Lulu De Mine is one of few companies to be granted exploitation permits in the Republic of Congo.
As at 2012, few exploitation permits had been granted by the Government of Congo, of which the company holds two.
Historically proven mining region
The mineral potential of the region where Société Lulu De Mine’s tenements are located was historically identified in the early 19th century by French geologists.
Mining operations have been conducted in the tenement area throughout the 20th century by both French and Congolese miners, until as recently as the 1990s, after which time mining activities ceased due to the breakout of civil war.
Exploration work conducted internally by Société Lulu De Mine since 2007 uncovered mineral deposits in the exploration area which led to the granting of the exploitation permits by the Congolese government.
The funds raised from the IPO will be used to conduct further exploration and feasibility studies to establish a JORC Resource by mid to late 2014 as well as an effective mining plan.
The tenements are situated about 150 kilometres west of the capital, Brazzaville, and about 400 kilometres from the main port of Congo, Pointe Noire.
The area is accessible by a sealed road, the N1 highway, and a network of local dirt tracks.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.