Xanadu poised to benefit from Mongolian mining laws

The deal still requires approval from the Chinese Government and Xanadu shareholders in order to be formalised.

However, Xanadu is confident both approvals are on track in addition to funding from the remaining two investment phases for the upcoming December quarter.

According to the Australian Department of Foreign Affairs and Trade, Mongolia has the potential for major economic expansion over the coming decades with its wealth of natural resources.

In 2013 the department introduced the Australia-Mongolia Extractives Program that aims to improve government capacity to manage a vital resource for Mongolia and underlines Australia’s political and commercial interest in a well-functioning resources export industry in the country.

Xanadu has recently kicked off a new exploration campaign at the company’s highly prospective Red Mountain project in the South Gobi region of Mongolia targeting shallow high-grade gold, silver and copper.

The company has a 100 per cent share in Red Mountain where early exploration has defined broad zones of strong quartz stockwork veining and associated high-grade gold mineralisation.

The project has a 30-year mining licence and comprises an underexplored porphyry district covering about 57 square kilometres.

As the Mongolian government continues to make changes to its foreign investment framework and mining laws, companies like Xanadu appear to be in the box seat to reap the benefits, West Australian writes.