Companies: CDN   

Bombed-out China gold play Caledon Resources could scoop some useful cash if possible bids for two of its corporate holdings come to fruition.

AIM-quoted Caledon, whose projects in the Middle Kingdom include 70 per cent of the 750,000 oz-plus Mojiang deposit in Yunan province, also has 19 per cent of Toronto-quoted Afcan Mining, with an indicated and inferred 1.3 million oz of gold at Tanjianshan on the edge of the Tibetan plateau, writes Robert Tyerman. Word in the market is that another Canadian group is close to making an offer for Afcan, which would take Caledon out at a significant profit to its £3 million purchase cost and bring a welcome £5 million into its coffers.

There are also understood to be corporate moves afoot that could involve Caledon’s 15 per cent holding in another Toronto-listed concern, Dynasty Gold, which pleasantly surprised the market in January with a potential resource of 1.2 million oz. This could be good news for Caledon, whose own China projects came through the knowledge and contacts (such as army-backed Chengwa Corporation) acquired by managing director George Salamis when he ran Chinese exploration for a Canadian mining group,

Shares in Caledon, which lost £1.8 million last year, have performed badly, falling from 16p in late 2003 to 3.88p today. If these deals reach fruition, that would help its operations in China, though market sentiment may prove fickle for while.