Perth, Sep 8, 2010 - Victory West Moly Limited is pleased to announce the signing of a binding Memorandum of Understanding with China Guangshou Group Corp ("CGGC") that, subject to due diligence, is to acquire a 65% interest in the Malala Molybdenum Project. CGGC is to commit to funding 100% of the exploration, development and exploitation costs required to take the Malala Molybdenum project into Production .
Under the proposed agreement, Victory West and the Company's local BUMD (Regency owned enterprise) partner are to be 'free carried' to large scale production. As a result, Victory West and the BUMD will hold a direct or indirect interest of 27.5% and 5% respectively in the Malala Molybdenum Project. A further 2.5% interest will be acquired by local Chinese interests.
VWM and CGGC (the "Parties") agree to work together to determine the most efficient structure to hold their respective project interests .
Source：http://www.abnnewswire.net/