Shenzhen, China (PRWEB) April 21, 2014
China Shouguan Mining Corporation (OTCQB: CHSO) announced today that it has successfully sold its CunliJi Mine to Yantai Jinjian Smelting Technology Limited (YJST) and Yantai JiHao Trading Limited (YJTL). The definitive agreement of Sales and Purchase of shares was signed on 31st March 2014 and the closing process is already underway. The transaction, in which YJST purchased 85% and YJTL 15% of the CunliJi Mine, netted China Shouguan a $1.45M USD profit. China Shouguan intends to use the sale proceeds for its national and international expansion efforts.
China Shouguan’s sale of the CunliJi Mine was conducted in response to local government regulations as well as a means to raise capital for national and international mine exploration and acquisition efforts. The Shandong Provincial Government passed regulations in July 2013 that all mines with annual production capacities under 40,000 tonnes be forced to close down by the end of 2015 and the CunliJi Mine fell within that category. Instead of expending significant capital attempting to meet that production capacity minimum, China Shouguan decided to sell the CunliJi Mine and use the profits to help finance their national and international mine exploration and acquisition efforts. With the gold market seeing signs of a rebound based upon strong Chinese demand, China Shouguan believes utilizing the profit capital to conduct strategic exploration and acquisitions is sound business strategy.
Mr. Feize Zhang, CEO of China Shouguan, said “The strategic sale of the CunliJI Mine shows that China Shouguan is a flexible and dynamic company able to adapt to changing regulatory and business environments. We are looking forward to deploying the profits from the sale into exciting new mine exploration and acquisition opportunities.”
Zhang concluded, “We believe China Shouguan is strongly positioned for an incredible 2014. We recently signed exploration agreements with the China National Administration of Coal Geology, are moving forward our mining joint-venture with the Daxinganling Government and are set to begin foreign mine acquisition and expansion efforts in N. America, Australia, S.E. and N.W. Asia. Now, with the recent sale of the CunliJi Mine, China Shouguan has an additional $1.45 Million of operations and expansion capital to achieve our goals.”
About China Shouguan Mining Corporation
China Shouguan Mining Corporation is a highly efficient gold mining exploration and development Company in the gold rich zones of Shandong and HeiLongJiang Provinces in China. The Company acquires or leases under-performing mines in major mineral zones, then funds their expanded exploration and production utilizing industry leading technologies. China Shouguan is planning to acquire mining operations in Australia, N. America and SE Asia and is focused on uplifting to NASDAQ by 2015.
Safe Harbor Statement This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.