Shares digital

A member of Chinese investment group Creat has become managing director of metals producer Zeehan Zinc (ZZL:AIM). Xiaojian Ren has taken the role after Creat invested £4.3 million in convertible loan notes entitling the Chinese group to lift its 6.6% holding to 19.9% of Zeehan.

Creat is part of a consortium that coordinates industrial opportunities between private businesses and the Chinese government. It is acquiring oil, gas and mining projects through stakes in overseas resource companies.

Zeehan’s first mine, Comstock, recently started production. Creat will fund an £11.5 million flotation plant to produce lead and zinc concentrates for the smelting market. It has avoided signing a long-term offtake agreement in the hope that Creat will want the end product.

Shares says: The stock price has fallen 61% to 8.5p since floating ten months ago. It has experienced permitting problems, production delays, weaker zinc prices, the CEO quitting after the IPO and offtake uncertainty. High risk, but wait to see if Creat can improve matters.

by: Dan Coatsworth