On June 6, 2007, Minco Gold Corporation ("Minco Gold") and the Company (a wholly owned subsidiary of Minco Gold at the time) entered into an Arrangement Agreement (the "Arrangement") to spin-off the White Silver Mountain project from Minco Gold to the Company. The Arrangement was approved by the shareholders of Minco Gold at a meeting of its shareholders held on July 16, 2007 and received final court approval on July 31, 2007. The Arrangement was completed with an effective date of November 15, 2007 (the "Effective Date").
The Company was dormant from the date of incorporation until the Effective Date when it acquired, from Minco Gold, all of the shares of "MM&M", a company incorporated under the laws of British Columbia. MM&M held an interest in Gansu Keyin Mining Co. Ltd. ("Keyin"), a Chinese registered entity. Keyin held a 100% interest in the White Silver Mountain project, located in Gansu, Peoples Republic of China ("China" or "PRC"). The transfer was affected by way of a plan of arrangement. As the transfer resulted in no substantive change in beneficial ownership of the net liabilities transferred, the transfer was accounted for at the carrying amount of the assets and liabilities in Minco Gold's accounts. As the assets and liabilities transferred did not, in aggregate, meet the definition of a business, the Company's accounts for the period prior to the transfer have not been restated under principles of continuity of interest accounting.
In September 2009, MM&M set up a wholly owned subsidiary in Hong Kong, MM&M HK, and transferred all of its interest in Keyin to MM&M HK.
The Company made the decision to sell its 61% interest in Keyin (which owned the White Silver Mountain Project) to its partner, Baiyin Non-ferrous Metals Group Co. Ltd. ("BNMC") due to certain unresolved commercial disagreements between the Company and BNMC. On December 23, 2009, after protracted negotiations, the Company and BNMC entered into the definitive agreement in respect of the sale of the shares in Keyin held by the Company (the "Sale Agreement") with a sale price of Chinese renminbi ("RMB") 155 million. This represented a gain of more than $23 million on the Company's original investment. The Sale Agreement was later amended by a supplemental agreement between the parties dated March 30, 2010 which provided, among other things, for the payment of the purchase price in three tranches. The sale was closed in late June of 2010 after all of the conditions were satisfied, and RMB 155 million was received by the Company. The proceeds from the sale of Keyin are being held in trust for the Company.
On May 13, 2013, the Company amalgamated with its subsidiary MM&M and continues its operations under the name of Minco Base Metals Corporation