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The Company currently holds exploration licence and mining licence of the Kharganii am-1 Molybdenum Property. Pursuant to an agreement with Maple Beauty Global Limited, the Company is also to acquire a mineral mining license to an iron and zine mine known as the Khaldun iron-zinc mine located in Govi-Ugtaal, Middle Govi (Dundgovi) province, Mongolia.

Kharganii am-1 Molybdenum Property


The Kharganii am-1 Molybdenum Property consists of exploration licence XV-014091 and mining licence MV-017604. The approximate center of Mining Licence MV-017604 is located at Latitude 48o32¡¯56¡± N and Longitude 106o22¡¯02¡± E (UTM WGS84 Zone 48U 600901 mE, 5378212 mN). The Property is located in the Bornuur sum (Bornuur district), in the Töv aimag (Central Province) of northern Mongolia.

Exploration Licence XV-014091 was granted by the Mining Resource Authority of Mongolia (¡°MRAM¡±) on September 2, 2008, and is currently valid until July 31, 2020 with an area of 1,073 ha.

Mining Licence MV-017604 was granted by the Geological Mining and Registration Office, Ulanbaatar, Mongolia on September 5, 2014 and is valid for 30 years until September 5, 2044 and is an irregular shape covering 42.12 ha.



The Property is 114 km northwest of Ulaanbaatar, the capital of Mongolia and 6 km north east of the Ulaanbaatar-Irkutsk (AH3) route.


Since acquiring the licence in 2008, Tunshan Xiangdong, the Company's subsidiary in Mongolia,  has completed 1:10,000 scale geological mapping over the property.

Tunshan Xiangdong has completed two IP profiles of 800 m length at 100 m spacing over the area of Molybdenum mineralization. Tunshan Xiangdong has excavated a total of approximately 15 trenches, from 9 to 16 m long to a maximum depth of 0.8 to 1.5 m.

Mongolia Zheng Yuan Ltd, retained by Tunshan Xiangdong, has drilled 29 holes from 2008 to 2014 for a total of 11,631.1 m. Drilling was done and made XY-4 exploration core drilling rigs capable of 1,000 m depth with 42 mm diameter drill rods.

For more information on the Property, please review the Company's filings on SEDAR.

Proposed Acquisition of the Khaldun iron-zinc mine

The Company has entered into an agreement with Maple Beauty Global Limited (¡°MBGL¡±) to acquire a mineral mining license to an iron and zine mine known as the Khaldun iron-zinc mine located in Govi-Ugtaal, Middle Govi (Dundgovi) province, Mongolia. In connection with the acquisition of the Khaldun iron-zinc mine, the Company has entered into a three-cornered amalgamation agreement (the ¡°Agreement¡±) dated February 7, 2017, with Genuine Success Global Limited (¡°GSGL¡±), a wholly-owned subsidiary of the Company, and MBGL, pursuant to which the Company will acquire the business and assets of MBGL, including the Khaldun iron-zinc mine. Under the terms of the Agreement, MBGL and GSGL will amalgamate (the ¡°Amalgamation¡±) under the BVI Business Companies Act and continue as one corporation (¡°Amalco¡±) that is a wholly-owned subsidiary of the Company, which will carry on the business of MBGL following the Amalgamation.

Pursuant to the Agreement, each holder of MBGL shares will receive five hundred (500) common shares of the Company for each share of MBGL held for a deemed aggregate purchase price of $20,000,000. Upon completion of the Amalgamation, it is expected that former MBGL shareholders will hold 25,000,000 common shares of the Company, at a deemed price of $0.80 per share, representing 32.21% of the 77,604,167 issued and outstanding common shares of the Company. A ¡°Resources Development and Utilization Plan for Khaldun Iron (Zinc) Mine, Govi-Ugtaal Sum, Middle Govi (Dundgovi) Province, Mongolia¡± has been prepared by Shandong Lianchuang Architectural Design Co., Ltd. on behalf of the Company. The Company has also engaged a qualified person to prepare a technical report in compliance with the standards set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

GSGL and MBGL are related parties by virtue of certain common shareholders, six of whom are not insiders of the Company and one of whom, ZhengXin Liu, is an insider of the Company by virtue of his indirect control of Long Harvest Ventures Limited, which holds 15,000,000 common shares of the Company, representing 19.33% of the issued and outstanding common shares of the Company. Mr. Liu owns 10,000 shares of MBGL and as a result of the amalgamation will receive 5,000,000 common shares of the Company representing 4.88% of the issued and outstanding common shares of the Company after the amalgamation (and together with the shares held by Long Harvest Ventures Limited, Mr. Liu will hold an aggregate of 20,000,000 common shares of the Company, representing 19.54% of the issued and outstanding common shares of the Company after the amalgamation).

Shareholders of the Company have approved the Amalgamation at the meeting of the shareholders of the Company on June 6, 2017. Closing of the Amalgamation (¡°Closing¡±) is subject to certain conditions, including regulatory approval.

Certain transactional mechanisms are being reviewed by management as to ensure a successful acquisition of the Khaldun iron-zinc mine.

For more information on the Khaldun iron-zinc mine and the technical report, please review the Company's filings on SEDAR.

                                 
                                 

 

 
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