Adamas Finance Asia Ltd (LON:ADAM) is restructuring its equity and debt interests in Hong Kong Mining Holdings, the special purpose vehicle holding its interest in Linfen Zhuangpeng Magnesium Co. Ltd.
Linfen Zhuangpeng owns a large open pit dolomite magnesium limestone operation located in Shanxi Province, China.
The restructuring involves the launch of a new British Virgin Islands incorporated wholly-owned subsidiary of the Adamas, Future Metal Holdings Ltd.
As a result of the restructuring, Adamus’s aggregate ownership interest in Linfeng Zhuangpeng will remain unchanged at 84.8%, but will now be held through two wholly owned SPVs, Future Metal and Dynamite Win Limited.
Adamas believes that the restructuring comes at an opportune time as Adamas prepares for the restart of operations at the mine in the second half of 2019. The restructuring is also in line with Adamas’s objective of repositioning and eventually monetising this investment, as the new name Future Metal more accurately depicts the nature of the business and its growth prospects.