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Adamas Finance Asia Alters Linfen Magnesium Ownership Structure

(Alliance News) - Adamas Finance Asia Ltd said Tuesday it will restructure its equity and debt ...

Alliance News 27 August, 2019 | 12:08PM
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(Alliance News) - Adamas Finance Asia Ltd said Tuesday it will restructure its equity and debt interests in Hong Kong Minings, a special purpose vehicle which owns 85% stake in Linfen Zhuangpeng Magnesium Co Ltd.

Linfen Zhuangpeng Magnesium owns a large open pit dolomite magnesium limestone operation in the Shanxi province in north China.

The restructuring will see Adamas launch a new British Virgin Islands subsidiary, Future Metal Holdings Ltd. As a result, Adamas interest in Linfen will remain unchanged, at about 85%, but the interest will now be held through two wholly owned special purpose vehicles, Future Metal and Dynamite Win Ltd instead of Hong Kong Mining.

"The directors believe that the restructuring comes at an opportune time as Adamas prepares for the restart of operations at the asset in the second half of 2019. The restructuring is also in line with Adamas' objective of repositioning and eventually monetising this investment, as the new name Future Metal more accurately depicts the nature of the asset's business and its growth prospects," the company said.

Shares in Adamas Finance Asia were untraded in London on Tuesday but last closed at 34.00 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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