08/06/2010 - 14:54

China Magnesium launches $8m IPO

08/06/2010 - 14:54

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China Magnesium (CMC) has launched an $8 million initial public offer and unleashed a veiled attack on the federal government's resource super profits tax.

China Magnesium launches $8m IPO

China Magnesium (CMC) has launched an $8 million initial public offer.

The vertically integrated magnesium company announced today it has lodged a prospectus with the Australian Securities and Investment Commission for an IPO and listing on ASX.

In a statement the company said, the purpose of the offer is to fund an initial upgrade and expansion of the Pinyao magnesium project in northern China and complete it's earn in of a minimum 75 per cent in the project.

But in the statement China Magnesium's non-executive chairman, William Bass, unleashed a veiled attack on the federal government's resource super profits tax.

He said that the group is backed by a supportive government and guided by a management team with significant experience in China.

"CMC operates in a country that is actively encouraging resources industry and investment," he Mr Bass.

"So the project is not exposed to the current uncertainty created by Australia's proposed resource super profits tax and the expansion project has been classified by local provincial government as a 'preferred project,'" he said.

The company's managing director Tom Blackhurst said the launching of the IPO was an exciting milestone for the company.

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