Wishbone Share News (WSBN)

The Executive Chairman of mining company Wishbone Gold is "convinced" commodity prices will rebound from recent falls due to Chinese demand. Richard Pouldon said the firm will benefit from the development of infrastructure in China including its high speed rail project and construction works on international airports. His remarks follow a recent slowdown in the world's second largest economy which the Chinese government has tried to address through a broad range of sweeping reforms announced last week such as loosening its one-child policy and opening financial markets to allow the yuan to trade more freely.In light of the reforms, the OECD said China's annual economic growth is likely to accelerate to 8.2% in 2014 from an expected 7.7% this year, driven by stronger domestic demand.However, a slump in China earlier this year contributed to a fall in commodity prices, hurting profits at mining companies.Yet Pouldon believes it will only be a matter of time before the market picks up again and volatility in gold and copper prices ends."China only cut its growth target from 7.5% to 7% next year so it's still doing well. There are no real signs of a slowdown in China," he told Sharecast."I am convinced [commodity prices] are coming back."In the meantime the group is taking advantage of buying cheap assets to grow the company. The mining firm has expanded from two to four exploration licences in Queensland, Australia since being admitted to AIM in July 2012 and is in the process of looking for value adding acquisitions. The biggest challenge facing the group, however, is weak investor sentiment, Pouldon cautioned. The company is currently exploring prospects in the Mingela region of Queensland, a gold province which hosts a number of mines. Licences include Wishbone II, III and IV and White Mountain.Last week the firm also announced a conditional share exchange agreement with Global Resources Investment Trust (GRIT). The deal will provide Wishbone access to capital through the sale of its shares in GRIT. Wishbone agreed to exchange 45,772,693 new ordinary shares of 0.1p in the company at a price of about 2.25 p per Exchange Share.Pouldon said the deal will give the company access to GRIT's contacts, expertise and funding to support the development of its licences. The Exchange Shares issued to GRIT will represent about 20% of the issued share capital of the company.Shares in Wishbone held at 2.12p at 10:55 on Wednesday.