(21 October 2007, Hong Kong) Yue Da Mining Holdings Limited ("Yue Da Holdings", stock code: 629) has announced a discloseable transaction: acquisition of mining rights in a Shaanxi mine.
Yue Da Holdings announced that Yue Da Mining, one of its wholly-owned subsidiaries, entered into a conditional acquisition agreement with Global Rise Investments Limited ("Global Rise") on 15 October 2007. Under the acquisition agreement, Yue Da Mining has agreed to acquire from Global Rise the entire issued share capital of Long Grand Investments Limited ("Long Grand") together with its sale loan at the consideration of HK$120 million. Long Grand is to own the entire interests in Shaanxi Daqian Company, a mining company in Shaanxi Province, the PRC through an acquisition.
Shaanxi Daqian Company is principally engaged in mining of lead ore and zinc ore, and is currently the holder of the mining licence in respect of a lead and zinc mining site situated in Shaanxi Province ("Target Mine"). Therefore, through the said acquisition, Yue Da Mining will acquire the interests in rights of mining of lead ore and zinc ore at the Target Mine. The estimated reserve of lead and zinc is approximately 154,000 metal tons for the Target Mine, with an average ore grade of 3 to 4%.
"We have been exploring opportunities in the business of exploring, mining, processing and sale of zinc, iron and lead ore since the first half of 2006. Through a number of successful acquisitions, now we have own interests in mining rights and exploring rights for five lead, zinc and iron ore deposits," said Mr. Dong Li Yong, the Vice Chairman, Executive Director and Chief Executive of Yue Da Holdings. "Given the high prices of metals (such as zinc and lead) over the past years as well as their strong domestic consumption and market demand due to the growing China economy, we believe that the acquisition of the Target Mine with abundant zinc and lead reserves will facilitate our mining business and further improve our overall profitability."