Companies: CDN   

China-focused Caledon Resources is seeking assets outside the People's Republic for itself and for a well-heeled Chinese group.

London-based Caledon, formerly Finelot, claims £10 million cash on its balance sheet and a string of investments either in China or outside with a China angle. These include 70 per cent of the Mojiang gold project in Yunnan province, where the company hopes a resource calculation early next year could suggest a potential 750,000 oz – with hints of much more to be established later on.

Caledon argues Mojiang is likely to be an open-pit operation and would need no fundraising by Caledon to be taken into production, despite the refractory nature of the ore. Caledon also has 30 per cent of Toronto-listed Butler Resources, with prospects in China's Guangxi 'Golden Triangle', where it must spend around £1 million over 18 months on exploration, which Caledon will be paid to manage.

AIM-quoted Caledon also has 15 per cent of Dynasty Gold, quoted on the Toronto Venture Exchange, with interest in a one million oz-plus deposit at Hatu in north-west China and two others at Ginghai and Gansu. The company hints there could be developments soon at Dynasty and says Caledon has 80 per cent of the 'Chengua' joint venture covering various mining projects – there is no oil venture yet, but that could follow.

Caledon adds that a 'well financed' Chinese group has asked the company to find some 'big assets' for it to consider, 'not necessarily in China'. According to the company, that is what Caledon itself is doing.

Caledon, which lost £1.2 million in the six months to June, has seen its shares rise from 2000's float price of 1p to a mere 3.5p today. Analysts say this represents no more than the company's cash.

It could handsomely repay a brave speculation, but don't put your shirt on it.