Toronto, Canada, July 14, 2022 (GLOBE NEWSWIRE) -- (TSXV: GMN) GobiMin Inc. (“GobiMin” or the “Company”, together with its subsidiaries collectively the “Group”) is pleased to announce that it has entered into a definitive agreement to sell the 100% indirect equity interest in a wholly-owned subsidiary, which owns the 70% indirect equity interest in the company holding the mining licence of the Sawayaerdun Gold Project, to a subsidiary of a Hong Kong listed mining company which is an independent third party to the Group (the “Buyer”) for approximately CAD95 million (USD74 million) in cash, which will result in net proceeds to the Company of approximately CAD88 million (USD68 million) after payment of Chinese taxes and transaction related expenses (the “Disposal”).
The Group shall receive from the Buyer the consideration, net of the withholding tax payable to China, after the registration of the equity transfer with the local authority and the completion of the handover. The Disposal is expected to be completed on or before September 30, 2022.
Mr Felipe Tan, president and Chief Executive Officer of GobiMin commented as follow: “the decision to sell the Gold Project has been arrived at a careful consideration of all options open to us under the current economic and market conditions. The Disposal enables the Group to maintain a strong financial position and the net proceeds from the Disposal can be used for pursuing new business opportunities.”
The Disposal is an arm’s length transaction as defined in the policies of the TSX Venture Exchange.
About the Company
GobiMin, the shares of which are traded under the symbol GMN, is an investment issuer under the rules of the TSX Venture Exchange. The Group is principally engaged in the investment in properties, equity, debt or other securities as well as direct ownership stakes in various projects.
For further information, please contact:
| Felipe Tan, Chief Executive Officer | | |
| Tel: (852) 3586-6500 | | |
| Email: felipe.tan@gobimin.com | | |
Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. Forward looking information includes without limitation, statements regarding the size and quality of the Company’s mineral resources, progress in development of mineral properties, the prospective mineralization of the properties, and planned exploration programs. The reader should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
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