Xanadu Mines, a junior exploration company is looking for buyers for its Mongolian thermal coal projects. The vast mineral wealth and the proximity to China make Mongolia the next boom country for the global mining community.
The company is in informal discussions to make the sale within the year as per Brian Thornton, the Chairman of Xanadu Mines. They had not yet hired a bank for the sale but expected it to go through in another six months.
Last February the company had gone into an alliance with the Noble Group to develop coking coal, iron ore and ferro alloys in Mongolia. In order to focus on this alliance with the commodities trader Xanadu Mines has decided to sell its wholly owned thermal coal projects in Mongolia.
The cash from the deals would be a game changer for Xanadu’s exploration said Mr. Thornton. He added that it would give them more flexibility and firepower to drill the bigger opportunities. He said there was scope to uncover monster deposits in Mongolia. He called it the resource-rich frontier of the world.
He added that Xanadu Mines would continue drilling its promising Sharchuluut copper-gold-molybdenum project in northern Mongolia in March or April. Along with that they will be pushing the coking-coal joint venture. The shares of the company were 0.5 cents at 34.5 cents on Thursday.