(Yicai) Nov. 21 -- MMG's shares rose after the Chinese multinational state-owned enterprise said it plans to invest nearly USD1.9 billion to buy the operator of a copper mine in Botswana.

MMG [HKG: 1208] was trading up 5.3 percent at HKD2.40 (31 US cents) as of 1.35 p.m. in Hong Kong today.

MMG Africa Ventures signed an equity acquisition deal with a group of companies led by Cupric Canyon Capital to buy all their shares in Canada-incorporated Cuprous Capital, the sole indirect shareholder of Botswanan project firm Khoemacau Copper Mining Proprietary, the operator of the Khoemacau Copper mine, according to a filing to the Hong Kong Stock Exchange today.

MMG will pay USD1.6 billion to the sellers when doing assets settlements and bear nearly USD269 million worth of net debt balance, the firm added.

The Khoemacau Mine is a large, long-life copper mine located in northwestern Botswana, in the emerging Kalahari Copperbelt, MMG said. Its 4,040-square-kilometer tenement package hosts the 10th largest African copper mineral resource by total contained copper metal and is one of the world’s largest copper sedimentary systems outside of the Central African Copperbelt.

The Khoemacau Copper mine has 450 million tons of mine ore with a copper content ratio of 1.4 percent and 18 grams of silver per ton. Its existing copper concentration capacity was 50,000 tons of copper content per year, with the annual production expected to exceed 130,000 tons by 2028/2029 fiscal year.

The mine's exploitation is initially expected to last 27 years, MMG noted. The period will likely extend by 10 more years, based on the existing mineral resource base and exploration potential of the 4,040-square-kilometer tenement package.

Editor: Futura Costaglione