China Mineral Company's Refusal to Accept Initial Offer

Online, February 17, 2010 (Newswire.com) - Consolidation seemed imminent for many mining companies in the Gansu Province. What began as small mining ventures who aimed to tap the regions vast reserves of gold and other precious metals have now caught the eye of larger companies seeking to capitalize on the established market.

News sources inside the province state report that the China Mineral Company, a particularly successful venture, has declined offers for consolidation. The news source, which has chosen to remain anonymous, suggests that companies' decision is strategic and that they appear confidant that a more attractive offer is coming. They state that "[the company] feels the substantial offer was a testament to their successful venture, and more are likely on the way". Non-disclosure agreements restricted reporting which larger company made the offer.

The news comes off the heels of a report issued by Citigroup concluding that future demand for gold is likely to surge in China. This, combined with the declining value of the euro suggests that many more consolidations, or offers for consolidations, are on the way for mining ventures, particularly those in the Gansu region.