Minco Silver purchases stake in Chinese cement manufacturing company
by CM Staff
The purchase price was funded exclusively from Minco Silver's surplus working capital, and represents an opportunity to earn a greater return than through traditional banking investments.
VANCOUVER — Minco Silver Corporation announces that it has entered into a transfer agreement to acquire a stake in Sichuan Hexie Shuangma Co., Ltd., a cement manufacturing company in China and the owner of several limestone mines.
Under the transfer agreement, the Company, through its wholly owned subsidiary, Minco Mining (China) Co., Ltd., will acquire an interest in the Tianjin Saikehuan Enterprise Management Center Limited Partnership from Tianjin Huaxin Anneng Management Consulting Partnership LP for RMB 119,762,699 in cash. Hexie currently has 763,360,918 outstanding shares, and an estimate total market capitalization of RMB 15.8 billion.
The purchase price was funded exclusively from Minco Silver’s surplus working capital, and represents an opportunity to earn a greater return than through traditional banking investments. The Company did not anticipate requiring this capital for other purposes in the foreseeable future.
In conjunction with the proposed acquisition, Minco China has also entered into a restructuring and distribution agreement with Saikehuan LP and its general partner pursuant to which the parties will use their best efforts to restructure the Saikehuan LP to initiate Minco China as a direct holder of the Hexie Shares with the right to trade those shares directly on behalf of the Saikehuan LP. Under the terms of this restructuring agreement, the Company will be entitled to recoup its entire purchase price from the proceeds of any sale of Hexie shares. Once the purchase price has been recouped in full, all remaining proceeds will be divided as to 20% to the general partner, with the remaining 80% distributed to Minco China.
The above transaction has been approved by Minco Silver’s board and Toronto Stock Exchange.
