HONG KONG, July 30 /PRNewswire-Asia / -- China Precious Metal Resources Holdings Co., Ltd. ("CPM", HKEx: 1194), a company engaged in gold mining, processing and sales, today dispatched a circular to shareholders in respect of its acquisition of mining assets located in the Mojiang Hani Minority Autonomous Prefecture. On June 2, 2010, CPM entered into a sales and purchase agreement with Pu Er Sheng An Di Property Company Limited (the "Vendor") for the acquisition of the entire share capital of Mojiang County Mining Co., Ltd. ("Mojiang County Mining") at a cash consideration of RMB335 million (approximately HK$385 million). An extraordinary general meeting will be held on August 16, 2010 for the consideration and approval of the resolution of this very substantial acquisition.
Mojiang County Mining is engaged in gold mining and sales in Mojiang Hani Minority Autonomous Prefecture, which is about 290 km southwest of Kunming, Yunnan Province, the PRC. The mine is targeted to produce 1,300 kg of gold per year between 2011 and 2013.
CPM Chief Executive Officer and Executive Director Dr. Dai Xiaobing said: "In light of the increase in gold prices from the second half of 2009, the Board is optimistic about the future prospects of the gold metal. We will actively explore further investment opportunities in high-quality gold projects in order to broaden the Group's revenue base. With the discontinuation of the business of production and sale of small pack edible oil and trading of edible oil and related products, and the commencement of gold production from the Chifeng gold mines in Inner Mongolia as scheduled after its acquisition in 2009, CPM has successfully transformed into a precious metal mining and sales operation with a focus on gold."
Pursuant to the new disclosure rules for mineral companies put into effect by the Hong Kong Stock Exchange on June 3, 2010, all listed companies are required to submit valuation reports prepared by a competent evaluator on major mineral or resources assets to be acquired, as well as to disclose in future interim and annual reports details of its exploration, development and mining production activities, with a summary of expenditure incurred on these activities. CPM's acquisition of mining assets in Mojiang Hani Autonomous Prefecture is a substantial acquisition processed under the new rules.
About CPM
China Precious Metal Resources Holdings Co., Ltd. (HKEx: 1194) focuses on the mining, processing and production of gold. The Company owns seven gold mines in Chifeng, Inner Mongolia, aggregating to a total mining area of 0.926 sq km and with proven reserves of 15.7 tonnes at average grade of 9.72 gram per tonne.
Contact:
Jenny Lee or Angus Ho
Tel: +852-2511-8388
Fax: +852-2511-8238
Email: cpm@t6pr.com
URL: http://www.t6pr.com
