On January 13, 2011, Minco Mining entered into a joint venture (JV) agreement as amended with the 208 Exploration Team, a subsidiary of China National Nuclear Corporation, to acquire a 51% interest in the gold project.
Minco said that the 208 Team has not complied with certain of its obligations under the JV agreement, including its obligation to set up a new JV entity and the transfer of its 100% interest in the Tugurige Gold Project to the JV company.
Upon entering into the JV Agreement, Minco China advanced $9m to the Tugurige Gold Mine in the form of a secured short term loan guaranteed by the 208 Team.
The funds have since been repaid to Minco China in full, with interest.
The JV agreement remains subject to the approvals of various Chinese Government agencies.
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