News

December 31, 2008

Zeehan Zinc Now Controlled By Chinese Who Have Switched Metal Target

Charles Wyatt

A little bit of good news to end off 2008 … and we certainly all need some. AIM listd Zeehan Zinc has received the sum of just over £3 million from the Chinese company Creat Group, in accordance with a share subscription agreed between the two companies signed on November 10th. At the time it was agreed that this payment would be made within 25 days of the Zeehan Zinc AGM and the new shares would be issued as soon as the money was received. Well the AGM took place on November 14th so the money was actually received 47 days later which must have caused some sweating among Zeehan shareholders over Christmas. The hope that they could hang onto at the time was that Creat Group, represented on the company board by Yuewhen Zheng as chairman and non-executive director and Xiaojian Ren as managing director and acting chief executive, had been a bit slow earlier in the year in paying up for its convertible loan agreement as a result of which it already had a holding of 6.2 per cent in Zeehan.

Now Creat Group is in the driving seat good and proper with a shareholding of 70 per cent and it is going to  direct over £2 million of this money into an exploration plan and budget focusing on nickel and the rest into meeting expenses and outstanding liabilities. Judging from the qualifications applied by its auditors to the  accounts for the year to end June 2008 this will merit a bit of discussion. The auditors claim they were not provided with information to support the...