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Newsroom - Clients - SDRG
The following news and investment research items reflect some of the recent business activity for selected clients of Empire Relations Group, Inc. Additional information for investment research can be found in the featured clients section. News and investment research are for informational purposes only.
Silver Dragon Resources Inc
Silver Dragon Resources Inc. Signs Agreement to Increase Equity Interest in Sanhe Sino-Top Resources and Technologies, Ltd. from 60% to 90%
TORONTO--(BUSINESS WIRE)--Silver Dragon Resources Inc. (OTCBB:SDRG - News) today announced the signing of an Asset Purchase Agreement with Sanhe Sino-Top Resources and Technologies, Ltd. ("Sino-Top"), a Chinese company which holds the exploration and mining rights to nine properties including the Erbahuo silver mine located in the prolific Erbahuo Silver District in Northern China.
Under the terms of the agreement, Silver Dragon will secure an additional 30% ownership interest in Sino-Top, increasing its total equity position from 60% to 90%, in exchange for 2 million restricted shares of common stock of the Company. The transaction is subject to receipt of the consent of the Ministry of Commerce ("MOC") in China.
Under the terms of the original agreement, when Silver Dragon initially purchased a 60% interest in Sino-Top, Silver Dragon was responsible for 100% of the exploration and property maintenance expenses on the nine properties. As a result of the asset purchase agreement announced herein, Silver Dragon will benefit from an additional 30% ownership interest with no increase in ongoing property expenses. Sino-Top has also made an application to the MOC to increase the registered capital and total investment of the company.
"The completion of Silver Dragon's increase in the equity of Sino-Top will be a significant and precedent setting milestone for our company. Our Chinese partners have shown great confidence by agreeing to take equity in our company in consideration for the additional interest in Sino-Top. Once Silver Dragon owns 90% of the equity of Sino-Top, our company and our shareholders will have more leverage and upside potential," commented Marc Hazout, President and Chief Executive Officer of Silver Dragon. "Our immediate objective is to monetize our assets by focusing on production plans for the Erbahuo Silver mine, and to convert the existing Chinese standard of ore calculations to NI 43-101 compliant standards while we continue to explore over 260 square kilometers of property in the Erbahuo silver district."
About Silver Dragon
Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing the Cerro las Minitas and the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this news release that are not historical fact, such as statements regarding the economic prospects of the company's projects, future plans or future revenues, future exploration plans and prospects, timing of development or potential expansion or improvements, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the company's ability to raise sufficient capital to fund development, changes in economic conditions or financial markets, changes in prices for the company's mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in China, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labour relations matters, and changing foreign exchange rates, all of which are described more fully in the company's filings with the Securities and Exchange Commission.
Silver Dragon Resources Inc.
Marc Hazout, President, 416-223-8500
Toll Fee: 1-866-512-SDRG (7374)
info@silverdragonresources.com
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About Silver Dragon Resources Inc.
Based in Canada and publicly traded on the OTCBB, we are focused
on the exploration, acquisition, development and the operation of
silver mines throughout the world. The properties are located in
proven silver districts of Mexico and China.
To link to this corporate profile in our members area click here (You must be a registered member to see profile).
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