Companies

Northwest Nonferrous takes controlling stake in Synergy Metals

(Xinhua)
Updated: 2011-07-05 16:15

XI'AN -- Northwest Nonferrous International Investment (NNII) announced it has acquired a controlling stake in Synergy Metals Ltd with A$12.6 million.

About 1.05 billion common shares of Synergy Metals has been transferred to NNII, taking 48.7 percent of the former's total equity, according to a company statement.

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NNII Chairman Sun Feng has been named as the president of the board of Synergy Metals.

Synergy Metals in return issued 1.05 billion stock options to NNII, allowing the latter to convert the options into its shares within three years at an exercisable price of A$0.016 per share. The options cost NNII A$16.8 million.

If the options were exercised, NNII's stake would be raised to 51 percent.

Established in 2007, NNII is a fully-owned subsidiary of the Northwest Nonferrous Group and specializes in overseas geological prospecting, mineral development, technology and consulting services.

Synergy Metals is a listed Australian company engaged in mineral prospecting. With its assets mostly situated in the north of Victoria, the company's operation covers a land area of 1,920 square kilometers.