Result of AGM

RNS Number : 1803I
Zeehan Zinc Limited
14 November 2008

14th November 2008

ZEEHAN ZINC LIMITED
('Zeehan Zinc' or the 'Company')

Result of AGM

Zeehan Zinc held its Annual General Meeting today in Hobart, Tasmania, and all resolutions were duly passed.

Shareholders, with the exception of Creat Group Limited ("Creat Group") and its associates who were excluded from voting, approved
Resolution 6 which enables the Company to issue to Creat Group up to 308.3 million ordinary shares in the capital of the Company at 1 pence
per share ("Subscription Shares") to raise �3,083,000 (approximately A$7.2 million).

On 10 November 2008 the Company entered into a Share Subscription Agreement with Creat Group (HK) Limited to regulate the acquisition of
the Subscription Shares. The Share Subscription Agreement, as amended on 14 November 2008 includes the following provisions:

* Completion will occur within 25 business days after the AGM ("Completion"). Zeehan Zinc will issue the Subscription Shares to
Creat Group on receipt of payment.

* Within the 12 month period after Completion, Creat Group will not sell, trade or otherwise deal in any of its shares in Zeehan
Zinc by way of an on market transaction without the prior consultation and approval of the Company's Nominated Adviser.

* The Company will seek to appoint at least one independent non-executive director to the Board, preferably with AIM and mining
experience, as soon as practicable following the AGM.

* Creat Group acknowledges that it and its agents will abstain from any and all deliberations and voting where it has a material
interest (as defined in the Australian Corporations Act 2001) in the subject matter of any transaction.
The subscription for shares by Creat Group will represent a related party transaction as defined under Rule 13 of the AIM rules. Dr
Yuewen Zheng, Chairman and Non-Executive Director of Zeehan Zinc and Mr Xiaojian Ren, Managing Director and acting CEO of Zeehan Zinc have a
material interest of greater than 30% in the Creat Group. The independent directors of Zeehan Zinc consider, having consulted with Libertas
Capital, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.

Use of funds
The Company intends to utilise the funds raised in the following manner:

* Around A$4.0 million to fund its exploration plan and budget focussing on nickel; and
* The remaining amounts to meet its ongoing overhead and administrative liabilities.
Completion
On Completion, Creat Group's shareholding in the Company will increase to 317,300,000 ordinary shares with voting rights representing an
increase from 6.2% to 70.0% of the entire issued share capital of the Company. As such, the interest of the existing shareholders will be
significantly reduced from 93.8% to 30% of the entire share capital.

The total issued share capital in the Company following Completion will be 453,276,674 ordinary shares with voting rights and the
Subscription Shares will, when issued, rank pari passu in all respects with the existing issued ordinary shares. Application will be made to
the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that admission will become
effective and that trading in the Placing Shares will commence on or around 19 December 2008.

For further information please visit www.zeehanzinc.com or enquire to:

Zeehan Zinc plc c/o Bankside
Tad Ballantyne Tel: +44 (0)20 7367 8888

Libertas Capital Tel: +44 (0)20 7569 9650
Jakob Kinde, Anthony Rowland

Bankside Consultants Tel: +44 (0)20 7367 8888
Simon Rothschild, Oliver Winters

Information on the Creat Group

Founded on July 28, 1992*Creat Group has developed to be a comprehensive investment enterprise group whose business has been extended to
industry, real estate, finance and mineral resources. Creat has established subsidiaries in Beijing, Shanghai, Jiangxi, Henan, Shandong,
Shaanxi, Jiangsu, Liaoning, Hong Kong and USA. There are about 5,000 employees in the aggregate under the Creat Group.

Industry Investment

Electronics----Henan PingGao Electric Co., Ltd
Henan Pinggao Electric Co., Ltd. was founded in 1970. In 1998, Creat invested USD 10.3 million (RMB 74.1million) in PingGao. Under the
direction of Creat, Pinggao listed on Shanghai Stock Exchange (SH, 600312) on Feb 21st, 2001. Pinggao Electric is now one of three bases for
researching, developing and manufacturing high voltage and ultrahigh voltage switchgear of China.

Concentrate Apple Juice----Yantai North Andre Juice Co., Ltd
Yantai North Andre Juice Co., Ltd. was established in 1996. In 2001, Creat invested USD14.4 million (RMB 104 million) in Andre. The
company supplies apple concentrate all over the world. Listed HK Nr.8259.

Biological Pharmacy----Shanghai RAAS Blood Products Co., Ltd
In 2003, Creat invested in Shanghai RAAS. Shanghai RAAS has now become the market leader in the field of plasma derived medicinal
products, setting unsurpassed quality standards in China, and has been among the top 500 industrial companies in Shanghai since 1996.
Shanghai RAAS listed in China Nr.002252.

Real Estate Investment
Lead REITS Asset Management Corporation
Lead REITS was founded on December 2006 at Binhai New District Tianjin. The company makes significant contributions to the practice and
development of real estate investment trusts in mainland China; and aims to become the first listed REITs public company in China mainland.
As at the end of 2007 Lead REITS had a total capital of USD 180 million (RMB 1.3 billion).

Jiangxi Urban Development Investment Co.
Jiangxi Urban Development Investment Co. was established in 2003, its registered capital is USD 13.9 million (RMB 100 million). At
present, its running project is ChengKai International Lyceum Project and ChengKai Riverside I Project.

Jiangxi Zhongcheng Construction Development Co. Ltd
Jiangxi Zhongcheng Construction Development Co. Ltd was established in 2005, its registered capital is USD 13.9 million (RMB 100
million). Its main business is city base station construction, real estate investment, property management and civil engineering. At
present, the running project is the Xinchang zone exploitation project in Nanchang, the land area is 6.13sq.km.

Financial Investment

In 2006, Creat Group Invested in the shares of Nanning City Commercial Bank.
Nanning City Commercial Bank was founded on March 1997. As at the end of 2006, the total capital is USD 1.3 billion (RMB 9.4 billion),
the profit for 2006 was USD 7.8 million (RMB 56 million).

In 2006, Creat Group Invested in the shares of Dalian City Commercial Bank.
Dalian City Commercial Bank was founded in March 1998. As at the end of 2004, the total capital was USD 4.7 billion (RMB 34 billion).

In 2006, Creat Group Invested in the shares of Nanchang City Commercial Bank.
Nanchang City Commercial Bank was founded on December 1997. As at the end of June 2007 the total capital was USD 3.5 billion (RMB 25.4
billion).

In 1999, Creat Group Invested in the shares of Eastern Life Insurance CO., Ltd.
Eastern Life Insurance CO., Ltd. was formally founded on Dec 28th 2001 becoming one of the first national insurance companies licensed
by CIRC after China's entry into the WTO.

Mineral Resource Investment
Creat Group has begun expanding its business into the mineral resource investments industry. Creat Group has completed a series of
mineral resources investigations in different provinces in China and extended to south Asia, east Africa and Australia for mineral resource
exploration.

From 2000, Creat Group has increased its interest in the mineral business and has a strong team of geologists, who have extensive
experience in Mining.

Creat Group has invested in the following mines:

* 3 zinc-lead mine in liaoning province, northeast of China
* tungsten-molybdenum mine in Jiangxi province, southeast of China
* golden mine in Sichuan province, southwest china of China
* Zeehan Zinc Ltd. Tasmania,Australia

This information is provided by RNS
The company news service from the London Stock Exchange

END

RAGFKQKBKBDDFDD

Zeehan Zinc (LSE:ZZL)
Historical Stock Chart
From May 2024 to Jun 2024