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China Magnesium launches IPO

China Magnesium launches IPO

DLA Phillips Fox has announced it is advising on the proposed initial public offering (IPO) and ASX listing of China Magnesium Corporation Ltd (CMC).CMC is hoping to become the world's largest…

DLA Phillips Fox has announced it is advising on the proposed initial public offering (IPO) and ASX listing of China Magnesium Corporation Ltd (CMC).

CMC is hoping to become the world's largest producer of pure magnesium and magnesium alloy over the next 3 years.

As such, CMC is raising funds in order to upgrade and gradually expand its processing plant in China's Shanxi mining province.

According to DLAPF, the upgrade and expansion will result in an increased capacity of 20,000 tonnes of pure magnesium and magnesium alloy per annum by February 2011.

The IPO prospectus has already been lodged with the ASX and completion of the expected $28 million capital raising and float is scheduled for 13 July.

Partner Eugene Fung led the DLAPF team, assisted by solicitors Kelly Morrison and John Whitehill.

"The weight of outbound Chinese investment rightly gets a lot of coverage," said Fung.

"But the market should also be aware that China welcomes inbound foreign investment and skills to modernise its industry, particularly in mining and minerals and metals processing. There are lucrative opportunities to combine Australian expertise in funding and commercialising resources projects with Chinese operational experience and low cost structures."

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