LRL Leyshon Res

 

TIDMLRL 
 
RNS Number : 8832F 
Leyshon Resources Limited 
21 January 2010 
 

LEYSHON RESOURCES LIMITED 
 
21 January 2010 
 
 
DECEMBER 2009 QUARTERLY REPORT 
 
 
Leyshon Resources Limited (AIM/ASX: LRL) (Company) is pleased to report that 
during the quarter it completed the sale of its interest in the Zheng Guang 
project. 
 
 
The sale was achieved with minimal associated costs and represents a gain of 
US$20.2 million based on a total of US$22.5 million invested into Zheng Guang 
since inception of the project. There were no advisory fees paid and legal and 
accountancy fees totalled US$40,000. 
 
 
As a result the Company now has approximately A$48 million in cash and on term 
deposit in 
Australia and RMB1.98 million in Beijing. At current exchange 
rates this equates to approximately 12 pence per share (A$0.22 per share). 
 
 
Subsequent to quarter end, the Company announced its intention to commence an on 
market 
share buy-back of up to 21,800,000 fully paid ordinary shares. This 
equates to approximately 10% of the fully paid issued capital. Seymour Pierce in 
London and Blackswan Equities in Australia are handling the buy-back on the 
Company's behalf. 
 
 
Investing Policy 
 
 
At the Annual General Meeting held in November, the Company received 
overwhelming support for the divestment of Zheng Guang and the proposed 
Investing Policy with approximately 25% of the issued capital being voted and of 
this 97% voting in favour of all resolutions. 
 
 
The main thrust of the policy was that: 
 
The Company proposes to draw on its six years experience in China and focus on 
acquiring and developing mineral and energy projects in those commodities and 
located in those countries which it believes will be of interest to Chinese 
mining and other groups for either offtake, partnership or sale. 
 
 
The Company has received over 50 projects for review and is actively reviewing 
those that are considered to have the potential to meet the Company's investment 
criteria. 
Whilst the Company remains alive to a wide range of opportunities that meet the 
investment guidelines both within China and elsewhere, the current focus is on a 
broad region encompassing 
Northern China and Southern Mongolia and 
specifically targeting primarily Coking Coal and Iron 
Ore. 
 
There is currently a strong focus on expanding Chinese domestic production of 
both Coking Coal and Iron Ore. The rate of development of regional 
infrastructure to facilitate this expansion is astonishing. 
The Company has quickly established excellent deal flow in these areas, building 
on existing long term relationships in some cases and in others creating the 
relationships and profile through introductions. 
QHD Iron Mountain Project 
 
 
The Company has entered into a 51%:49% exploration and production joint venture 
with Qiqiha'r Tai Fu Trading Company Ltd on the QHD Iron Mountain project in the 
Tang Shan district of Hebei East China. 
 
 
The Tang Shan district is one of the main iron mining districts in the East 
China Iron Belt. The industry is characterized by a large number of smaller 
operations mining magnetite from near surface Banded Iron Formation style 
deposits and processing through simple magnetic separation plants to produce 
smelter grade concentrate for sale at the mine gate. 
 
 
Qiqiha'r Tai Fu Trading Company Ltd is a coal mining group from Heilongjiang 
that was one of the bidders for the Zheng Guang project and has been known to 
the Company for some time. 
 
 
The Company is currently undertaking a 1500 metre drill programme following up 
coincident ground magnetics and surface rock chip and geological mapping it 
generated during December. 
 
 
The programme has been hampered by freezing conditions (-25oC), but will 
continue through Chinese New Year and is expected to confirm the size of the 
potential resources, that the mineralogy is magnetite not hematite and provide 
samples for metallurgical testwork. 
 
 
Completion of the programme and test work is expected to be in mid April. 
 
 
Other Potential Joint Ventures 
 
 
The Company is actively working on a number of other joint venture opportunities 
in Coking Coal and Iron Ore that have the potential to fit the criteria set out 
in the proposed investing policy. 
 
 
Managing Director Paul Atherley commented: "Following the strong shareholder 
support for the Investing Policy, the Company will continue to be located in 
Beijing and will draw on its six years' experience in China to identify projects 
located in those countries and commodities which are of interest to Chinese 
groups." 
 
 
For further information contact: 
 
 
Leyshon Resources Limited 
Paul Atherley - Managing Director 
Tel: +86 137 1800 1914 
patherley@leyshonresources.com 
 
 
Seymour Pierce 
Jonathan Wright 
Tel: +44 (0)207 107 8000 
 
http://www.leyshonresources.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCGMGZMNGFGGZM 
 

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