Attached files
| file | filename |
|---|---|
| 8-K - CHINA SHEN ZHOU MINING & RESOURCES, INC. | v208170_8k.htm |
| EX-10.1 - CHINA SHEN ZHOU MINING & RESOURCES, INC. | v208170_ex10-1.htm |
China
Shen Zhou Acquired 55% of the Xinyi Fluorite Company
Ltd.
in Anhui Province
9:04a ET
January 13, 2011 (PR NewsWire)
China
Shen Zhou Mining & Resources, Inc. (“China Shen Zhou”, or the “Company”)
(NYSE Amex: SHZ), a company engaged in the exploration, development, mining and
processing of fluorite, zinc, lead, copper, and other nonferrous metals in
China, today announced that its subsidiary Xingzhen Mining Ltd. (“Xingzhen”) has
signed an equity transfer agreement with the shareholders of Xinyi Fluorite
Company Ltd. (“Xinyi”), which is based in Jingde County, Anhui Province.
Pursuant to the agreement, Xingzhen has agreed to pay RMB 65 million
(approximately US$ 9.85 million) to acquire a 55% equity position in Xinyi.
Payment under the agreement consists of RMB 50 million (approximately US$ 7.58
million) in China Shen Zhou's common shares and RMB 15 million (approximately
US$ 2.27 million) in cash.
Under the
agreement, Xingzhen, together with two individual investors also agreed to pay
an additional RMB 28 million (approximately US$ 4.24 million) to Xinyi including
RMB 20 million (US$ 3.03 million) for the renovation of Xinyi's mining
facilities.
This
acquisition was made to further develop China Shen Zhou’s fluorite resources for
the production of value-added fluorine chemicals - one of its core businesses.
As such, Xinyi’s three primary assets are interests in flourite mines in Anhui
Province as follows: 1) the mining permit to the Xinyi Qingzheng Fluorite Mine
No.1, 2) the mining permit for the Guangrong Fluorite Mine, and 3) the mining
rights and assets of the Sanxi Old Town flotation plant.
The
management of China Shen Zhou Mining hope that the new entity could produce
approximately 35,000 metric tons of fluorite powder to generate about $10
million in revenue and between $5 million to $6 million of net income in
2011.Then the fluorite powder production of Xinyi is expected to increase by
about 70% to 60,000 metric tons next year.
Ms.
Xiaojing Yu, Chief Executive Officer of China Shen Zhou, commented, “this
acquisition is very favorable as the resources are readily available and the
mine has an excellent operating track record since 2003 of extracting high-grade
fluorite.”
“This is
our first fluorite transaction to take advantage of the government's policy to
encourage consolidation of smaller fluorite operations. We believe that by
possessing the largest fluorite mine in northern China, we are attracting
increasing interest from smaller, regional firms where we can leverage our
sales, production, and our marketing network. This is our first venture outside
our Mongolian fluorite base and being located in Anhui Province also provides
access to much lower-cost processing. Our combined stock and cash offer created
the incentive for the owners of Xinyi to enter into the transaction and it shows
their confidence in our future,” Ms. Yu concluded.
About
China Shen Zhou Mining & Resources, Inc.
China
Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in
the exploration, development, mining, and processing of fluorite and nonferrous
metals such as zinc, lead and copper in China. The Company has the following
principal areas of interest in China: (a) fluorite extraction and processing in
the Sumochaganaobao region of Inner Mongolia; (b) zinc/copper/lead exploration,
mining and processing in Wulatehouqi of Inner Mongolia; and (3) zinc/copper
exploration, mining and processing in Xinjiang. For more information, please
visit http://www.chinaszmg.com/
Safe
Harbor Statement
Certain
of the statements made in the press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of forward-looking
terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,”
“plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable
terminology. Such statements typically involve risks and uncertainties and may
include financial projections or information regarding our future plans,
objectives or performance. Actual results could differ materially from the
expectations reflected in such forward-looking statements as a result of a
variety of factors, including the risks associated with the effect of changing
economic conditions in the People's Republic of China, variations in cash flow,
fluctuation in mineral prices, risks associated with exploration and mining
operations, and the potential of securing additional mineral resources, and
other risk factors detailed in reports filed with the Securities and Exchange
Commission from time to time.
For more
information, please contact:
Kevin
Theiss
Investor
Relations
Grayling
Tel:
+1-646-284-9409
kevin.theiss@grayling.com
min.liu@grayling.com