CNMC

CNMC: 81% owned subsidiary, CMNM entered into a contract with Sincan Juyuan Mining Sdn. Bhd. (SJM), for the mining and production of silver, lead and zinc at a 1.5sq km plot in Sokor Mines, Kelantan, Malaysia. According to an independent technical review report issued the co reported that approx 1.3m ounces of silver, 9.2k tonnes of lead and 8.9k tonnes of zinc have been discovered in the area. SJM is obliged to complete the mining process from Jan 2012 to Dec 2014. SJM will have priority in purchasing the extracted metals and be responsible for all taxes for the silver, lead and zinc produced. In return, CMNM shall be entitled to 30% from the sales of the silver, lead and zinc (whether sold to SJM or to third parties), based on the executed sale price. There appears to be no cash consideration.

All gold resulting from the processing of silver, lead and zinc under the contract belongs to CMNM but CMNM shall pay the relevant processing and extraction costs for such gold to SJM.

This in effect outsources the production to SJM but retains ownership the gold mined for CNMC. CNMC recently listed in end Oct with the Sokor Mines as their flagship project.