A Chinese fund has contributed $3 million in financing to explorations for copper, gold, zinc and silver at two project sites in Alaska.
The Anchorage Daily News reports that Sino-Canada Natural Resources Fund, which represents the interests of a group of Chinese investors, is providing the $3 million investment to Heatherdale Resources (TSX.V:HTR) with a two year term and an annual interest rate of 8%, as well as the option to convert the investment into common shares further down the road.
Vancouver-based Heatherdale Resources has interests in two Alaskan mining projects – a 100% stake in the advanced exploration stage Niblack project, whose mineral resources are believed to contain copper, gold, zinc and silver, and a 60% stake in the mid-stage Delta project, which is exploring for copper, gold, silver and lead.
Under the funding agreement Sino-Canada may nominate one person to Heatherdale's technical advisory committee at present as well as nominate one person for appointment as a Heatherdale director contingent upon fulfilling "certain share ownership or voting conditions."
The investment comes just as Canadian mining juniors face tight capital markets at home while cash-flush Chinese companies splurge on resource and mining assets abroad.
In just the past week China's CNOOC obtained approval for the $15.1 billion takeover of energy giant Nexen – the largest ever overseas acquisition by a Chinese company, while PetroChina obtained a minority stake in a shale gas development in Alberta for $1.2 billion