Redwood City, CA (PRWEB) October 06, 2011
The Yasheng Group, a diversified China-based agricultural conglomerate with U.S. headquarters in California, announced that it has entered into an option agreement with Plomosa Placers, LLC. The agreement grants Yasheng the right to conduct exploration and the option to purchase thirty-nine mining claims in La Paz County, Arizona.
The properties are located in the central portion of the southern Plomosa Mountains and consist of overlapping load and placer claims covering approximately 1100 acres near Quartzsite, Arizona. An Environmental Assessment and Plan of Operation for the Plomosa Placer Mine were filed and accepted by Bureau of Land Management in 2008 and 2010, respectively.
The option agreement is part of Yasheng's ongoing strategy of international expansion and is expected to receive support by the Chinese government, which provides subsidies to China-based companies acquiring natural resource assets in foreign markets.
Yasheng chose Plomosa Placers after careful consideration of several other mining properties in the U.S. As stated in the company's 2010 annual report, "We have sought the advice and counsel of recognized professionals involved in the mining industry to assist us in our evaluation of mining prospects brought to us by brokers and to document and guide us in any mining venture we might become involved with."
Chairman Zhou Changsheng commented, "With the expected support of the Chinese government, and with our own background in salt mining, we feel that this is natural direction for Yasheng. Based on current prices of silver and gold and the relatively minor cost of the option, we believe that the agreement represents a low-risk opportunity to significantly expand our U.S. operations."
More information on the option agreement is available in the 8-K report filed on July 14th.
Yasheng Group (OTCQB: YHGG) (http://www.yashenggroup.com), founded over 30 years ago, is a U.S. holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is led by a highly qualified management team and it has total assets of approximately $1.9 billion including over 250,000 acres of agricultural land that are utilized for grazing, cultivation, and reclamation, of which 50,000 acres are under cultivation using the latest scientific technologies to produce a wide variety of agricultural products. Yasheng has over 15,000 employees, and a history of strong sales and earnings growth.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.
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