HONG KONG, Nov. 24, 2010 /PRNewswire-Asia/ -- Gold mining and processing company China Precious Metal Resources Holdings Co., Ltd. ("CPM", HKEx: 1194) announces the acquisition of two mining licences in Inner Mongolia and Henan Province, the PRC, at a total consideration of RMB116 million. The two mines have total resource for gold of approximately 7 tonnes.
Dr. Dai Xiaobing, Chief Executive Officer and Executive Director of CPM said: "The acquisitions are in line with our strategy to expand the Group's mine asset portfolio by acquiring licences for sites in proximity to existing mines. This will enable us to enjoy further scale advantage thereby driving down our mining costs."
The first sale and purchase agreement (the "Chifeng Acquisition") was entered into on 23 November 2010 in respect of the acquisition of a mining licence for a site near the Group's existing Chifeng Mines in Inner Mongolia at a consideration of RMB26 million, to be settled in cash. The mining area has gold resource of approximately 1.78 tonnes (in accordance with the China Solid Mineral Resource Classification Standards 112b and 333). Applications shall be made to the Inner Mongolia Autonomous Region Department of Land and Resources.
A further sale and purchase agreement (the "Jinlin Acquisition") was entered into on the same day for the acquisition of a mining licence for a site close to the Group's existing Luanchuan Mines in Henan Province. The consideration is agreed to be RMB90 million payable in cash. The site has gold resource of approximately 5.23 tonnes (in accordance with the China Solid Mineral Resource/Reserve Classification Standards 332 and 333). Applications shall be made to the Department of Land and Resources of Henan Province.
Dr. Dai continued to say that: "The acquisition moves were made after thorough studies and negotiations with the respective vendors. Since the Group has successful track records in operating mining businesses in the two places, the acquisitions have received recognition and support from the local governments. We believe that the additional licences will help generate new sources of steady income for the Group immediately upon completion of the acquisitions."
About CPM
China Precious Metal Resources Holdings Co., Ltd. (HKEx: 1194) is a cost-efficient high-growth gold producer with a strong record of building reserves and resources through acquisition. The Company owns gold mines in China's three well-endowed fold belts, including Chifeng Fold Belt in Inner Mongolia, Xiaoqinling Fold Belt in Henan and Ailaoshan Fold Belt in Yunnan. The Group also holds interests in Norton Gold Fields Limited (ASX: NGF), a company incorporated in Australia.
For more information, please contact:
Jenny Lee or Angus Ho
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Tel: +852-2511-8388
Fax: +852-2511-8238
Email: cpm@t6pr.com
