TORONTO, Aug. 9, 2012 /CNW/ - (TSXV: GMN) GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce that further to the press release of August 2, 2012, the Yanxi Mining Licence has been granted. Accordingly, the Company has received the final payment of the consideration of HK$89,000,000 in the form of the convertible bonds of China Daye Non-Ferrous Metals Mining Limited ("CB") pursuant to the related sales and purchase agreement in connection with the disposal of the Yanxi Copper Deposit.
The shares of China Daye are listed on The Stock Exchange of Hong Kong Limited (HKEx Stock Code: 661). The ultimate controlling shareholder of China Daye is a China state-owned enterprise. The CB can be converted into listed shares of China Daye on or before December 31, 2013 (the "Maturity Date") at the discretion of GobiMin. If GobiMin has not converted the CB at the Maturity Date, China Daye shall pay to the Company the outstanding principal plus interest at the rate of 1% per annum from July 22, 2010 (i.e. the date of the issuance of the CB) to July 22, 2012 (i.e. the initial agreed maturity date).
In addition to obtaining the Yanxi Mining Licence, the Company will also be responsible for the drilling work and application for a mining licence (the "New Mining Licence") of an area which is adjacent to the Yanxi Copper Deposit (the "Yanxi New Area"). The Company will be entitled to an additional consideration partially in cash and partially in CB based on the resource estimate of the Yanxi New Area. The Company is currently conducting the drilling work of the Yanxi New Area and will make further announcement once additional information is available.
GobiMin owns a 70% equity interest in Xinjiang Tongyuan Minerals Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang, China. GobiMin also owns a 40%-50% interest each in four other base metal joint ventures in Xinjiang and retains an 8% equity interest in the Yanxi Copper Deposit. In addition, the Company also holds a 48.02% equity interest in a silver operation.
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. The readers 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 readers 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.
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SOURCE: GobiMin Inc.
For further information:
Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500