Narrative
Full Description
Project narrative
On December 9, 2008, Perilya and Zhongjin Lingnan announced that subject to approvals, Zhongjin Lingnan would purchase 197,672,000 fully paid ordinary shares in Australian mining company Perilya Limited at a price of $0.23 AUD per share, to acquire 50.1% of Perilya, for a total cash consideration of $45.5 million AID. Then, on February 9, 2009, Zhongjin Lingnan Mining (HK) Company Limited, a wholly owned subsidiary of Zhongjin Lingnan, completed the acquisition of the a 50.1% ownership stake in Perilya. Then, on September 3, 2013, it was announced that Zhongjin Lingnan and Perilya Limited had entered into a binding Scheme Implementation Agreement under which Zhongjin Lingnan acquire all the outstanding shares in Perilya for an offer consideration of $0.35 AUD per share. The acquisition of the remaining shares was successful. The Shenzhen Branch of the Export-Import Bank of China issued a loan to Chinese mining company Shenzhen Zhongjin Lingnan Nonfemet Co., Limited to finance its acquisition of Perilya Limited. The precise commitment detail and loan details are unknown.
Staff comments
1. Perilya Limited is an Australian base metals mining and exploration company; at the time of the 2009 acquisition, it operated the Broken Hill zinc, lead, and silver mine in New South Wales and the Flinders zinc silicate project in South Australia (see "Perilya releases notice of meeting for February EGM to vote on Zhongjin Placement"). 2. "深圳市中金岭南有色金属股份有限公司2009年年度报告", Zhongjin Lingnan's annual report for 2009, lists several loans from the Shenzhen Branch of the Export-Import Bank of China in late 2008. These loans had issuance dates of October 17, October 17, November 11, and December 16; the December 16 date being the only loan committed after this purchase was initially agreed to. These loans all carried a maturity period of two years and a face value of RMB 100,000,000.00; their interest rate, however, were as follows (in order earliest issuance date): 3.60%, 4.49%, 3.60%, and 4.78%. Among these candidates, AidData suspects that the December 16, 2008, two-year RMB 100,000,000 loan with a 4.78% maturity period was the one mostly likely used in support of the acquisition of Perilya. However, "深圳市中金岭南有色金属股份有限公司 2013 年度报告", Zhongjin Lingnan's annual report for 2013, around when the second acquisition occurred, notes the December 10, 2013 issuance of a three-year $58,000,000 USD (RMB 353,620,200) loan from Shenzhen Branch of the Export-Import Bank of China. Because AidData has been unable to identify conclusively which acquisition China Eximbank supported, it has been unable to decide which the commitment detail and loan details of this loan. For now, AidData has coded 2013 as the commitment_date_field, as this was the latest possible date for the loan, and marked the commitment_date_estimated? field as True. This issue warrants further investigation.