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| Framework Agreement to Acquire Silver Resource and Strategic Framework Cooperation Agreement with the People's Government of Aohanqi |
HONG KONG, Apr 11, 2011 - (ACN Newswire) - Sino Prosper State Gold Resources Holdings Limited ("Sino Prosper" or the "Group"; SEHK: 0766), a Chinese precious metals miner and producer, announces today that the Group has entered into two very significant agreements.
Framework Agreement to Acquire the Xiangguang Silver Project ("Xiangguang Project")
In line with the Group's strategy aiming to acquire producing or near-production precious metal assets, Sino Prosper State Gold HK Limited, a wholly-owned subsidiary of Sino Prosper, entered into a Framework Agreement (the "Framework Agreement") on 7 April 2011, regarding the potential acquisition of part of or all of a 85% interest in a Target Company, which engaged in the business of exploration and mining of silver and manganese minerals. The Target Company has an exploration license and a mining license in respect of silver and manganese mines located in Zhuolu County, Hebei Province, with a Chinese standard resource of approximately 422 tons of silver and 129,685 tons of manganese.
Pursuant to the Framework Agreement, Sino Prosper was granted an exclusive right for a three month period to conduct due diligence pending intended entering into a formal agreement for the possible acquisition.
Mr. Richard Sung, CEO and Executive Director of Sino Prosper, said, "Further to our acquisitions of Aohanqi and Zhongyi projects, this proposed acquisition of the Xiangguang Project interest is an important step forward for us to diversify our precious metal assets into silver, enabling the Group to strengthen its future JORC resource and production levels. In addition to the promising gold price, the Group is also optimistic about global silver prospects. The Group believes that its availability of capital and expertise will allow it to accelerate the Xianguang Project and positively impact both Sino Prosper's precious metal resources and production per share.
Strategic Framework Cooperation Agreement with the People's Government of Aohanqi
On 2 April 2011, Sino Prosper has entered into what it believes is a significant Framework Cooperative Agreement (the "Cooperative Agreement") with the People's Government of Aohan Banner, Inner Mongolia, the PRC ("Aohan Banner Government") in relation to, among other matters, exploration, consolidation and/or development of certain mineral resources in the Aohan Banner.
Under the Cooperative Agreement, Sino Prosper Minerals Investment Limited ("SP Minerals"), a wholly-owned subsidiary of Sino Prosper, and the Aohan Banner Government express their common intent for SP Minerals to conduct, in areas under the jurisdiction of the Aohan Banner Government, preliminary exploration of unencumbered areas with gold and copper mineral prospects. Additionally, the parties have agreed to cooperate in the consolidation of gold and copper resource assets in such areas, and also exploration and development of jade and gem stone resources. SP Minerals may also set up production facilities for gold, copper, jade and gem stone resources.
Pursuant to the Cooperative Agreement, the Aohan Banner Government agreed to supply SP Minerals with exploration areas for gold, copper, jade and gem stone resources based on the objectives of SP Minerals, and also to provide land use priority to SP Minerals regarding its processing facilities. During the project development stage, so long as permitted by law, the Aohan Banner Government will waive various administrative fees chargeable at the banner level on SP Minerals' relevant project company(ies), and will coordinate with relevant parties to allow SP Minerals' project company(ies) to enjoy the lowest possible administrative fees chargeable at or above municipal level.
In addition, the Aohan Banner Government has also agreed to assist SP Minerals in, project approval, environmental evaluation, mining, development and processing of gold, copper, jade and gem stone resources, and also ensure the normal production and smooth operation of the projects undertaken by SP Minerals. It will also assist SP Minerals to apply for national project subsidies, and ensure that SP Minerals may enjoy the preferential policies applicable to industrial enterprises promulgated by Aohan Banner Government.
SP Minerals may set up project companies (with independent legal person status) in the Aohan Banner to make investments in the cooperative arrangement as contemplated by the Framework Cooperative Agreement. It will utilize its advantages in capital, management, and technology to implement the cooperative arrangement and to enhance gold, copper, jade and gem stone resource production efficiency by utilizing technology of international level. In the design and operation, SP Minerals will follow the national industrial policy of the PRC, and will ensure that relevant safety and environmental standards are consistent with the national standards of the PRC.
The Aohan Banner covers over 8,300km2 and is a prolific mining region with over 40 operating state-owned mines, including 17 large and small state-owned gold mines. Sino Proper's producing Aohanqi Gold Mine and related 500 tonne per day processing plant are located in the banner and are adjacent to the famous Jin Tao Gold Mine, the largest in Inner Mongolia.
Mr. Sung concluded, "We are honored and excited to cooperate with Aohan Banner Government. The strong support that the Aohan Banner Government is showing for Sino Prosper is a direct result of the Group's status in the Banner and in the greater Chifeng District, and reflects their recognition of the Group's business and confidence in the Group's expertise and development strategies. This cooperation enables Sino Prosper to identify consolidation/acquisition and expansion opportunities in the region. We expect this will have a dramatic impact on the rapid development of our business and strategy of expanding resources and production to enhance returns to our shareholders."
Contact:
Sino Prosper State Gold Resources Holdings Limited
Mr. Garry Stein
Director, Corporate Development
Tel: +852-2829-8911 / +852 6051-8659
E-mail: garrystein@sinoprosper.com
Quam IR
Ms. Anita Wan
Tel: (852) 2217-2687
E-mail: anita.wan@quamgroup.com
Ms. Sharon Au
Tel: +852-2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Contract Awarded
Source: Sino Prosper State Gold Resources
Sectors: Metals & Mining
https://www.acnnewswire.com
From the Asia Corporate News Network
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