projects in the pipe.

http://doclink.demarest.com.br/fds/fds.aspx?lib=BIBLIOTECA&doc=68058

Echecopar and Grau seal mining deal, one year on
Published 25 September 2009
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Peru's Estudio Echecopar and Estudio Grau have negotiated the sale of iron ore
mining concessions to a Chinese conglomerate for US$100 million, half the price
originally agreed last year.
Canadian mining group Cardero used Estudio Echecopar in the sale of the Pampa de
Pongo site to Jinzhao Mining, a Peruvian subsidiary of China's Nanjinzhao Group,
represented by Estudio Grau and the Guangda Law Firm in Beijing.
The sale was originally agreed in October last year for US$200 million but the price
was renegotiated in May to half that figure because of the impact of the global
financial crisis on iron ore prices. Nanjinzhao encountered further delays in securing
a guarantor for the deal, citing new regulations requiring Chinese government
approval for overseas investments.
Under the new agreement, signed on 8 September, titles to the property have been
transferred to Nanjinzhao immediately but will revert to Cardero if the deal fails to
win Chinese regulatory approval. Nanjinzhao has already paid US$12 million and
must pay the outstanding US$88 million before 17 December.
"This deal involved extensive negotiations in China, Canada and Peru among
multiple parties," says Oscar Trelles of Estudio Echecopar. "One of the challenges
was to allow for the transfer of the mining concessions pending approval by the
Chinese government, while also compensating the seller and granting it the right to
recover the property if the approval is not granted."
The 15,300-hectare Pampa de Pongo project in Ica, 400km south of Lima, is
believed to be the third-largest iron deposit in Peru. Cardero acquired the rights
from Rio Tinto in 2004.
Nanjinzhao, based in China's eastern Shandong province, has holdings in iron
mining, steelmaking, power, rail and harbour facilities.
Counsel to Cardero Resource Corp and Cardero Hierro del Peru
• In-house counsel to Cardero Resource - Lawrence Talbot in Vancouver
• Estudio Echecopar
Partner Valentín Paniagua and associate Oscar Trelles in Lima
Counsel to Nanjinzhao Group Co and Jinzhao Mining Peru
China
• Guangda Law Firm
Partner Richard An in Beijing
Demarest e Almeida Advogados - Biblioteca
Peru
• Estudio Grau
Partner Cecilia Gonzáles Guerra and associate Edgardo Portaro