Business/Economy

Group exploring Alaska mining options backed by Chinese fund

Heatherdale Resources, a company interested in zinc, copper, gold and silver mining at two sites in Alaska, announced Thursday a $3 million financing deal with the Chinese-backed Sino-Canada Natural Resources Fund, according to The Ketchikan Daily via the Anchorage Daily News.

Sino-Canada will provide Heatherdale with the money to continue mining exploration and development at the Niblack Project site on Prince of Wales Island in Southeast Alaska and at the Delta Project in Tok in Alaska's Interior.

The funds come with a two-year term and an 8 percent annual interest rate. Additionally, the deal will allow Sino-Canada to nominate one candidate to serve on Heatherdale's technical advisory committee until it meets certain Share ownership or voting conditions, after which Sino-Canada will have acquired the right to nominate a director.

Heatherdale Resources is known as a "junior" exploration company which works to bring projects closer to production. Healtherdale is associated with Hunter Dickinson Inc., a global mining group based out of Vancouver, British Columbia, Canada.

According to Yahoo Finance, Sino-Canada is registered as a private equity fund "focused on investments in Canadian listed and privet companies that develop and operate natural resource projects" worldwide, including mining, oil and gas, and forestry. The fund is managed in Hong Kong on behalf of private Chinese investors.

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