May 10, 2012 on: business, Economical, Mining

Xanadu Mines (ASX: XAM) will add the prospective Oyut Ulaan copper-gold project in the South Gobi region of Mongolia to its exploration portfolio with the proposed acquisition of Temujin Mining Corporation’s wholly owned subsidiary Vantage LLC.

The further 75% will be acquired following approval of the transaction by Xanadu shareholders. Highlighting the prospectivity of the South Gobi region, Oyut Ulaan is surrounded by a number of porphyry copper and copper skarn deposits including Ivanhoe Mines (TSX: IVN, NYSE: IVN) massive Oyu Tolgoi mine. Oyu Tolgoi, which is scheduled to be in production in 2013, is the word’s largest undeveloped copper-gold project with 81 billion pounds of copper and 46 million ounces of gold. Further upside of the acquisition, is Oyut Ulaan is strategically located in a region with planned near term rail infrastructure. The acquisition of Oyut Ulaan will further consolidate Xanadu’s copper and gold asset portfolio in the South East Gobi region. Deal terms To settle the acquisition of Vantage LLC, Xanadu will issue 3.9 million new shares and A$4.2 million in shares at a price equal to the 15-day volume weighted average price of Xanadu shares on the day of the general meeting to approve the deal. A further 15 million Xanadu shares will be issued upon the definition of a JORC Resource of at least 90 million tonnes at 1% copper equivalent. To acquire the initial 25% interest Xanadu must cover expenditures to complete hydrology, environmental and assay reports on the project area. The company must spend a minimum of $5 million on the project in the 30 months after the mining licence is granted. Please note that this article and / or its accompanying media (picture, video, sound files etc…) has not been written, created or taken by M.A.D. Investment Solutions staff. It is not copyrighted to M.A.D. Investment Solutions nor does the company claim any ownership or rights towards the content and its accompanying media. The above article does not in any case represent the views or opinions of M.A.D. Investment Solutions or any of its affiliate individuals or companies. The article above is purely meant as a source of information to readers and does not constitute a legal or biding agreement in any way, shape or form. Ownership of the content and its accompanying media remains with its legal owner or contributor but was sourced from Public Domain sources. If you are the owner of this content or its media and would like it replaced or taken out of our website, please contact us on: info@mad-mongolia.com. For contact and comments directly relating to the above article and or its accompanying media, please refer to the source as stated below

SOURCE OF THIS ARTICLE : Proactive Investors

Please note that this article and / or its accompanying media (picture, video, sound files etc…) has not been written, created or taken by M.A.D. Investment Solutions staff. It is not copyrighted to M.A.D. Investment Solutions nor does the company claim any ownership or rights towards the content and its accompanying media. The above article does not in any case represent the views or opinions of M.A.D. Investment Solutions or any of its affiliate individuals or companies. The article above is purely meant as a source of information to readers and does not constitute a legal or biding agreement in any way, shape or form. Ownership of the content and its accompanying media remains with its legal owner or contributor but was sourced from Public Domain sources. If you are the owner of this content or its media and would like it replaced or taken out of our website, please contact us on: info@mad-mongolia.com. For contact and comments directly relating to the above article and or its accompanying media, please refer to the source as stated above.

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