China Silver Group Announces Signing of a Memorandum of Understanding Regarding Acquisition of Mining Right
[For Immediate Release]
China Silver Group Announces Signing of a Memorandum of Understanding
Regarding Acquisition of Mining Right
HONG KONG, 15 August 2016 - Leading Chinese silver brand China Silver Group Limited (“China Silver Group” or “the Group”; Stock Code: 815.HK) is pleased to announce that the Group has entered into a memorandum of understanding with an independent third party to acquire 100% of Hanzhong Gold Polymetal Mining Limited which owns a mining right in Shaanxi Province of the PRC. The mine is currently under operation and carries gold, silver and other metal resources with total estimated economic value of over RMB3 billion – based on current market price. Subject to further due diligence work and the execution of the formal agreement, the consideration to be satisfied in cash will not exceed RMB150 million – with a profit guarantee of RMB30 million in 2017 provided by the vendor.
As a vertically-integrated silver and precious metals enterprise, the Group’s business spans from upstream to downstream, which includes silver refinery, O2O retail and silver exchange businesses. The Group takes the acquisition as a stepping stone to explore more upstream investment opportunities with a view to developing the Group’s vertically-integrated business chain, improving operational efficiency, enhancing its competitiveness, elevating its market position, and becoming a leading vertically-integrated silver and precious metals enterprise in the PRC.
Mr. Chen Wantian, Chairman of China Silver Group said “With the low interest rate environment and persistent weakness in the economy, we are strongly confident in the silver and gold market. We believe we can enhance the Group’s value and improve our integrated business chain by expanding to the upstream mining industry. This upstream acquisition will strengthen our market position and fulfill our long-term goal of building a fully-integrated business model. Looking forward, we will continue to explore different market opportunities in order to become a leading vertically integrated silver and precious metals enterprise in the PRC.”
# # #
China Silver Group Limited
Founded in 2002, China Silver Group is a leading silver producer in China and one of the few Chinese companies capable of producing silver ingots with a purity grade of 99.999%, currently the world's highest standard. The Group is a member of the London Bullion Market Association (LBMA) and has been ranked as one of the 20 most popular silver brands in China for 11 consecutive years. In recent years, the Group has diversified into the downstream businesses and launched an integrated O2O platform “金貓銀貓www.CSmall.com”. Furthermore, the Group has fully acquired Shanghai White Platinum and Silver Exchange to develop the silver exchange business, aiming to become the leading vertically integrated silver enterprise in China.
For further enquiries, please contact:
Ka Wai Li
Tel: (852) 2894 6252
Tel: (852) 2894 6258
next：China Silver Group Announces 2016 Interim Results