Central China Goldfields PLC
Central China Goldfields PLC: SNOW MOUNTAIN DISPOSAL RAISES US$5.4M
Central China Goldfields PLC / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Central China Goldfields plc ('GGG' or 'the Company') SNOW MOUNTAIN DISPOSAL RAISES US$5.4M LONDON – 2 April 2008: Following a number of approaches by Chinese third parties in relation to the Snow Mountain Project, Central China Goldfields plc recently decided to undertake a strategic review of its exploration assets. Following this review the Board has decided to sell the Snow Mountain Project and use the funds to accelerate exploration at the Gangjiang Licence at Nimu and the development of the Dong Mao Huo gold project. The Company, in line with its joint venture agreement, subsequently discussed these approaches with its Snow Mountain partner, the Sichuan Bureau of Metallurgy and Geological Exploration ('SBMGE') who indicated that they wished to exercise their right to purchase the project ahead of third parties. The Board of Central China and the Sichuan Bureau of Metallurgy and Geological Exploration after extensive discussion have now mutually agreed that the project will be transferred to the Bureau for a consideration of RMB 38 million (approximately US$ 5.4 million) payable in cash. Highlights: • Snow Mountain sold to Sichuan Bureau of Metallurgy and Geological Exploration • Cash consideration of RMB 38 million (about US$ 5.4 million) in three instalments • Accelerated delineation of copper-molybdenum resources on the Gangjiang licence at Nimu. Jeff Malaihollo, Managing Director of Central China Goldfields plc, comments: 'In 2008 our main focus will be on our copper-molybdenum project at Nimu and the gold project at Dong Mao Huo and our decision to sell Snow Mountain reflects this focus. Under the right of first refusal, we offered the Snow Mountain Project back to our partner who agreed to purchase our interest for a cash consideration of RMB 38 million. The proceeds from the sale of Snow Mountain will ensure that the Nimu work programme in 2008 will be accelerated with the aim of delineating a resource on the Gangjiang licence area which was the subject of the successful scout drilling programme in the summer of 2007. This transaction demonstrates Central China Goldfields ability to create value and leverage the strong local relationship that we have developed throughout the years.' The proceeds of RMB 38 million will be paid in three instalments. The first payment of RMB 12 million will be paid within 10 working days of the signing of the agreement (2 April 2008), the second part of RMB 13 million within two months of the signing of the agreement and the final instalment of RMB 13 million payable upon transfer of all licences back to the SBMGE. Expenditure on the Snow Mountain project to date was approximately RMB 24 million and will give rise to a profit of RMB 14 million (circa US$ 2 million). For Further Information: Central China Goldfields plc Dr. Jeffrey Malaihollo. Tel: 020 7621 0200 Paul McGroary. Tel: 07930 568160 Email: info@ccgoldfields.com www.ccgoldfields.com Hanson Westhouse Limited Louis Castro / Martin Davison Tel: 020 7601 6100 02.04.2008 Financial News transmitted by DGAP ----------------------------------------------------------------------
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