27/05/2008 - 13:08

Aurox clarifies China connection

27/05/2008 - 13:08

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Aurox Resources Ltd today released a response to media reports to clarify the relationship between the WA-based explorer and China's state owned Chengde Iron and Steel Group.

Aurox  clarifies China connection

Aurox Resources Ltd today released a response to media reports to clarify the relationship between the WA-based explorer and China's state owned Chengde Iron and Steel Group.

The company said that media reports in Hong Kong and WA have reported that "China's state owned Chengde Iron and Steel Group was in talks to buy a stake" in Aurox Resources Limited.

Aurox said in the announcement that Chengde Iron and Steel Group entered into a 15-year sales agreement for
iron ore concentrate from the Company's Balla Balla project in March 2007.

The company's share register already includes RockCheck Steel Group Co. Ltd of China with approximately 8% of the issued capital of Aurox.

Aurox has held discussions in recent months with a number of parties concerning equity investment, including Chengde, and although those are ongoing there is no certainty that a transaction will be concluded.

The response followed a request to enter a trading halt by the company.

 

Full announcement pasted below:

The Company has been made aware of media reports in Hong Kong and WA that have reported that "China's state owned Chengde Iron and Steel Group was in talks to buy a stake" in Aurox Resources Limited.

Chengde Iron & Steel Co., Ltd ("Chengde") entered into a 15 year sales agreement for iron ore concentrate from the Company's Balla Balla project in March 2007.

Since that time Aurox has had a number of discussions with Chengde concerning equity investment to build on the strong relationship between the two companies. As noted in the media reports, the Company's share register already includes RockCheck Steel Group Co. Ltd of China with approximately 8% of the issued capital of Aurox.

Aurox has held discussions in recent months with a number of parties concerning equity investment, including Chengde, although would note that whilst those and other discussions are ongoing there is no certainty that a transaction will be concluded.

 

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