Trading Symbol: MCV
TORONTO, Aug. 3 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased to
announce that its 51% owned subsidiary, McVicar (Hongkong) Advanced Materials
Co. Ltd. ("MAM") has signed a letter of intent to acquire 100% interest in
Hongzhou Changlong Chemical Co. Ltd. ("Changlong") that is based in Zhejiang
province, China. MAM will pay a cash amount of 20.50 million RMB,
(CDN $2.88 million), and 9.5% of MAM's shares (equivalent to 30 million RMB)
In order to maintain a 51% controlling interest, McVicar will pay a cash
amount of 15.29 million RMB (CDN $2.14 million) to MAM. The new share holding
structure of MAM will be McVicar (51%), Shining Palace (39.5%) and Changlong
(9.5%). MAM will advance a payment of 2 million RMB to Changlong upon signing
the agreement. Changlong will apply for all required government approvals.
Changlong is a developer, manufacturer and supplier of specialized fine
chemical products used in the pharmaceutical industry. The company's
technology synthesizes chemicals under high pressure. Its customers are mainly
Chinese pharmaceutical companies. The company is in a phase of an accelerated
growth. In 2006, Changlong generated revenue of approximately 35 million RMB
(CDN $5 million) and management expects to generate more than 5 million RMB
(CDN $700,000) in gross profit for fiscal year 2007.
"I am pleased with this new acquisition. It is a further step for McVicar
to add new lines of technology and products to our intermediate chemicals for
the pharmaceutical industry," Dr. Gang Chai, McVicar's CEO, commented.
"McVicar is making great progress in achieving its strategy to establish a
full chain of intermediate chemicals in the pharmaceutical, personal care and
lithium battery industries started from our core holding in Zhejiang Hongbo
Chemical Co. Ltd."
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Dr. Gang Chai, at: 55 University Avenue, Suite
605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,