T&H interested in cement plant

Junior T&H Resources (TSE) is negotiating with Michael Zhang for the right to acquire up to a 60% interest in a cement plant, near Changchun in southeastern China.

By way of a private placement, Zhang bought 1.1 million shares of T&H, representing 7.9% of the outstanding shares. In addition, Zhang has the right to buy an additional 7 million units at 20 cents each. Each unit will consist of one common share and a warrant entitling the holder to buy an additional share at 25 cents, exercisable for a 5-year period from the time the warrant is issued. On a fully diluted basis, this would represent a 51% interest in T&H.

The issue has yet to be approved by shareholders and regulators. Shareholders must also approve the disposition of all mining assets of T&H to a subsidiary. Shares of the subsidiary will be distributed to T&H shareholders by way of a dividend, prior to completion of the private placement.