Minco Silver Enters Preliminary Agreement to Acquire Producing Gold Mine in China
Minco Silver Enters Preliminary Agreement to
Acquire Producing Gold Mine in China
TSX: MSV; OTCQX: MISVF
VANCOUVER
,
Sept. 13, 2018
/CNW/ -
Minco Silver Corporation
(the "Company" or "Minco
Silver")
(TSX: MSV
)
is pleased to announce that it has entered into a preliminary agreement to
acquire 70% of the equity interests in Changling Longxin Mining Co., Ltd ("Longxin Mining"), a
Chinese mining company which holds a 100% interest in the Longwangshan Gold Mine, located in
Shuikuoshan mining district,
Hunan, China
. The Longwangshan Gold Mine is a fully permitted 1000
tonne-per-day open pit mine with a mill and smelter on site. The estimated purchase price for the
70% equity interest in Longxin Mining under the preliminary agreement is a range of 147-168 million
Remnimbi (28-32 million Canadian).
Under the preliminary agreement, the Company, through its wholly owned subsidiary, Minco Mining
(
China
) Co., Ltd. ("Minco China"), has exclusive rights to acquire 70% of the equity interests in the
Longwangshan Gold Mine. The preliminary agreement was negotiated between the Company and
the existing shareholders of Longxin Mining on an arms-length basis. The Company is conducting a
full due diligence review of Longxin Mining and the Longwangshan Gold Mine, including a drilling
program to verify the reserves and resources of the mine.
In conjunction with the proposed acquisition, Minco China has also entered a loan agreement with
Longxin Mining and its shareholders pursuant to which Minco China has provided the shareholders
with a convertible loan of 74.8 million Reminbi (the "Loan"). The term of the Loan is six months and
bears interest at the rate of 10% per annum. The Loan is fully secured by the shareholders' 100%
equity interest in Longxin Mining and all assets of the Longwangshan Gold Mine. In addition, the
Loan has been fully guaranteed by the shareholders of Longxin Mining and a significant real estate
company controlled by them. If the results of the due diligence program are positive and the
Company decides to proceed with the acquisition, the Loan will be converted into equity in Longxin
Mining and thereby credited towards the purchase price. If the Company decides not to proceed
with the acquisition, then the Loan, together with all accrued interest, shall be repaid in full.
Further announcements with respect to the acquisition, the Longwanghsan Gold Mine and the final
purchase price will be made following the completion by the Company of its due diligence
investigation, expected to be completed within three months.
About Minco Silver
Minco Silver Corporation is a TSX and OTCQX listed company focusing on the acquisition and
development of silver dominant projects. For more information on Minco Silver, please visit the
Company's website at
www.mincosilver.ca
or contact
Jennifer Trevitt
, at 1-888-288-8288 or (604)
688-8002
SOURCE
Minco Silver Corporation
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http://www.newswire.ca/en/releases/archive/September2018/13/c8940.html
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For further information:
on Minco Silver, please visit the Company's website at
www.mincosilver.ca or contact Jennifer Trevitt, at 1-888-288-8288 or (604) 688-8002,
CO: Minco Silver Corporation
CNW 10:23e 13-SEP-18