News

April 02, 2009

Leyshon Resources Adheres To The Latin Maxim ‘Festina Lente’ In China

By Charles Wyatt

“May you live in interesting times“ is an old Chinese saying and Paul Atherley, chief executive of Leyshon Resources, certainly finds himself in that position. His company has a gold project in China and China is now the biggest producer of gold in the world. His partner, Qiqiha’er Brigade of the Heilongjiang BGMR, is one of the largest geological bureaux in China. The Zheng Guang gold zinc project is in the mineral rich province of Heilongjiang in north east China and the local district of Heibaoshan has a number of coal and copper mines under construction. When Zheng Guang is in production it will be Heilongjiang’s first Sino Foreign gold mine. Paul is living in Beijing and over 80 per cent of the staff are either Chinese or speak Mandarin. All these things should bring Leyshon Resources and its development project into favour in China. Paul’s big job now is to find the development capital.

One of his problems in the eyes of investors is that Leyshon has a 70 per cent interest in the project, but appears to be carrying the Qiqiha’er Brigade all the way through to production. As Paul points out from Beijing today, this is not quite the case. The funding for the Brigade’s 30 per cent interest is effectively a loan as it will be paid back by Leyshon taking 100 per cent of revenue once production starts. The expected cost is comparatively low at US$45.5 million for a 1.5 to 2.25...