White Cliff Nickel (ASX: WCN) has announced that its Kygryz Chanach copper-gold project joint venture partner, T2 Gold, has completed a funding arrangement with Hebei Mining Company.
Hebei Mining is a Chinese state owned enterprise, and under the funding arrangement Hebei Mining has acquired a 20% interest in T2G by way of an initial $1.74 million investment.
Further, Hebei Mining have an option, exercisable up to 31 August 2011, to subscribe for additional T2G shares for a minimum further investment of $6.56 million that would result in Hebei having a 44% interest in T2G.
As a result of this investment, T2G is now well placed to fund its share of the next few years of proposed exploration programs at the Kyrgyz Chanach copper-gold joint venture project.
Both T2G and White Cliff each hold a 45% interest in this project.
Michael Langoulant, chairman of White Cliff, said “This significant investment by Hebei in our Chanach joint ventured project provides a huge uplift in the value of this project which the market has yet to appreciate.
"The project due diligence undertaken by Hebei was very detailed and included a field visit by three very experienced and highly qualified geologists."
At the Chanach Project, the 2011 field season camp has been established and two bull dozers are currently on site cutting new access tracks, upgrading existing tracks, establishing drill pads and creating trenches for sampling activities.
An induced polarisation and ground magnetics geophysical program will be conducted during June to provide further information to assist designing this year’s drill program.
Drilling is expected to commence in July/August.