TORONTO, Jan. 31 /CNW/ - Further to the press release on February 9,
2010, GobiMin Inc. ("GobiMin" or the "Company") announces the extension
of the deadline for obtaining the approval for the Balikun Coal Project
(the "Project") from the National Development & Reform Commission of
the PRC ("NDRC Approval") from January 31 to September 30, 2011.
After the completion of the acquisition of a 49% equity stake in Hami
Coal Corporation (formerly "Fortune Aspect Limited") in February 2010,
GobiMin owns an indirect equity interest of 24.49% in the Project.
According to the acquisition agreement entered into between GobiMin and
the Vendor, the 2nd installment of RMB100,000,000 (CAD15.33 million)
was payable upon receipt of NDRC Approval, to be obtained on or before
January 31, 2011, and would be offset by the secured loan of
RMB100,000,000 made to the existing shareholder of the Project.
The PRC government is currently integrating the domestic coal industry
in order to standardize coal exploration and intensify development of
the coal resources, aiming to maintain a reliable supply of resources
and a sustainable development. Therefore, it is expected that the PRC
government shall require more time to review the application and that
NDRC Approval shall not be granted on or before January 31, 2011.
The Corporation and the Vendor have accordingly entered into a
Supplemental Agreement to extend the deadline for obtaining the NDRC
Approval to September 30, 2011. Other than the extension, all other
terms and conditions of the acquisition agreement shall continue in
full force and legal effect.
A total of 1,800m of shaft work was completed during the year 2010
(2,900m since commencement of construction in late 2009), covering the
main ramp, the ventilation ramp and the auxiliary ramp.
The supporting and basic living facilities were mainly completed in
2010. The equipments purchased and systems installed generally included
power supply, drainage, heating, production commanding centre and
communication network. At the end of 2010, the power and water supply
is in place, and the central commanding system and the communication
system are in operation.
All construction work is currently suspended for winter and will resume
in April 2011. The planned work for 2011 includes continuance of the
mining construction and infrastructure, and improvement on the
According to a NI 43-101 Mineral Resource estimate prepared by Scott
Wilson Ltd. in February 2010, the Project hosts 38 million tonnes of
coal in Measured Resources and 50 million tonnes in Indicated
As at September 30, 2010, GobiMin had approximately USD47 million in
cash and cash equivalent (approximately USD0.69 per share based on the
total issued capital of 67,443,202 shares).
Other than the equity interest of 24.49% in the Balikun Coal Project,
GobiMin owns an equity interest of 70% in Xinjiang Tongyuan Minerals
Ltd. for the Sawayaerdun Gold Project in Xinjiang, China. GobiMin has
an 8% equity interest in the Yanxi Copper Deposit and four other joint
ventures on base metal projects in Xinjiang.
GobiMin is aggressively seeking opportunities to acquire high quality
mining and exploration projects.
Certain statements contained in this press release constitute
forward-looking information. Such statements are based on the current
expectations of management of GobiMin. You are cautioned that such
statements are subject to a multitude of risks and uncertainties that
could cause actual results, future circumstances or events to differ
materially from those projected in the forward-looking information.
The reader should not place undue reliance on the forward-looking
information included in this press release given that (i) actual
results could differ materially from a conclusion, forecast or
projection in the forward-looking information, and (ii) certain
material factors or assumptions were applied in drawing a conclusion or
making a forecast or projection as reflected in the forward-looking
information could prove to be inaccurate. These statements speak only
as of the date they are made, and GobiMin assumes no obligation to
revise such statements as a result of any event, circumstance or
otherwise, except in accordance with law. There is no guarantee that
the transaction mentioned in this press release will be completed or
that its terms will not be varied.
"Neither TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release."
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SOURCE GobiMin Inc.
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