Chinalco Yunnan Copper Resources (ASX:CYU) has provided an update on the placement of securities to JCHX Group.
On 22 October 2015, CYU announced to the ASX details of the proposed strategic co-operation agreement with the Beijing-based JCHX Group.
As part of the proposed co-operation, JCHX is to provide a total of A$4.5 million of funding to CYU and in turn, be issued ordinary CYU shares and convertible bonds.
It was proposed to complete this funding arrangement on or about 31 October 2015, subject to CYU securing the requisite internal Chinese approvals to enable the further issue of ordinary shares and convertible bonds to proceed.
CYU said at this stage however, these internal approvals have not been obtained nor can the company be certain as to when they are likely to be forthcoming.
As a result, JCHX has exercised its right to seek to re-negotiate the terms on which the A$4.5 million of funding will be provided to CYU.
JCHX has given a clear indication to CYU management that it still wishes to provide the funding (and for Mr Wang Xiancheng to join the CYU Board), but has also made it clear that with some recent volatility in the CYU share price, JCHX would like to re-negotiate the funding terms.
CYU said that these discussions are continuing, while further clarity around the internal Chinese approvals is being sought.
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