TORONTO, Jan. 4 /CNW/ - Further to its press release published on July
23, 2010 regarding the completion of the sale of the Yanxi Copper
Deposit, GobiMin Inc. ("GobiMin" or the "Company") announces that it
has entered into a supplemental agreement (the "Supplemental
Agreement") with China Daye Non-Ferrous Metals Mining Limited ("China
Daye") on December 30, 2010.
In July 2010, the sale of 80% equity interest in Yanxi Copper Deposit
(the "Deposit") to China Daye including a 32% equity interest from
GobiMin was completed while GobiMin retains an 8% indirect equity
interest in the Deposit thereafter. GobiMin's share of the net proceeds
from the aforesaid sale will correspond to approximately 40% of the
total consideration received after netting off the licensing fee, tax,
stamp duty and the related expenses and payments.
After the aforesaid completion, the Company and China Daye realized that
the licenced area of the Deposit will be affected by the construction
of a railway across the Deposit. The Company and China Daye have
accordingly entered into the Supplemental Agreement to amend, among
others, the following terms and conditions:
In addition to applying for the mining licence for the Deposit (the
"Yanxi Mining Licence"), the Company will also be responsible for
applying for a mining licence (the "New Mining Licence") for an area
which is adjacent to the Deposit (the "New Area").
The deadline for obtaining the Yanxi Mining Licence is extended to
August 31, 2011 from December 31, 2010.
The consideration to be received upon obtaining the Yanxi Mining Licence
is reduced by HK$21,000,000 to HK$259,000,000. The amount of
HK$21,000,000 will be deducted from the convertible bonds
The drilling work and the related expenses including the licensing fee
for the New Area will be borne by the Company.
The exploration licence of the New Area should be obtained on or before
August 31, 2011.
The resource estimate of the New Area should be provided on or before
December 31, 2012.
The New Mining Licence should be obtained on or before June 30, 2014.
The Company will be entitled to the Non-delivered CB and an additional
consideration in cash based on the resource estimate of the New Area,
in total with a cap of HK$106,000,000, of which 50% will be paid upon
the Company providing the resources estimate report and the remaining
50% will be used to settle the licensing fee of the New Area with the
balance paid to the Company upon obtaining the New Mining Licence. The
final and total consideration will accordingly be capped to
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).
GobiMin owns an equity interest of 70% in Xinjiang Tongyuan Minerals
Ltd. for the development of the Sawayaerdun Gold Project in Xinjiang,
China. GobiMin has four other joint ventures on base metal projects in
Xinjiang and 8% equity interest in the Yanxi Copper Deposit.
As announced in its press release of February 9, 2010, GobiMin acquired
an indirect equity interest of 24.49% in Balikun Coal Project in
Xinjiang, China and will participate in its management and operations.
GobiMin and its partner jointly have a controlling interest in the
Project through Xinjiang Ruide Mining Limited. According to a NI 43-101
Mineral Resource estimate prepared by Scott Wilson Ltd. in February
2010, the Balikun Coal Project hosts 38 million tonnes of coal in
Measured Resources and 50 million tonnes in Indicated Resources.
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 as 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.
For further information:
Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500