Sun Innovation Holdings (HKG:0547) has published an update on its possible acquisitions of manganese and iron mine assets from Guangxi Non-ferrous Metals Group Company Limited (GXNF) and Guangxi Sincerity Investments & Trading Company Limited (SCT). Due diligence review on the target group and feasibility studies, examination of mineral samples and other technical work in connection with the preparation of the reports on the reserves and/or resources of the target group's mines in South Africa and Cambodia are still ongoing, Sun Innovation said.

Sun Innovation understands from the technical consultant engaged to prepare the reports on those reserves and/or resources that it is currently expected to take at least a further six months to complete those reports. Sun Innovation also understands from GXNF and SCT that they would require more time to complete certain internal corporate reorganisation of the target group before they are in a position to proceed with the possible acquisitions. The framework agreement provides for an exclusivity period during which the parties have agreed, on a binding basis, to engage in exclusive negotiations with respect to the possible acquisitions. This is due to expire on 2 April 2012. In view of this, the board of Sun Innovation has commenced discussions with GXNF and SCT with a view to determining whether to extend the term of the exclusivity period and if so, whether any of the indicative terms of the possible acquisitions contained in the framework agreement would need to be revised or supplemented.

The possible acquisitions may or may not proceed and the final structure and terms and conditions of the possible acquisitions have yet to be finalised and may deviate from those set out in the framework agreement, Sun Innovation said.