TSX: MSV; OTCQX: MISVF
VANCOUVER, Sept. 13, 2018 /CNW/ - Minco Silver
Corporation (the "Company" or "Minco Silver") (TSX:
MSV) is pleased to announce that it has entered into a
preliminary agreement to acquire 70% of the equity interests in
Changling Longxin Mining Co., Ltd ("Longxin Mining"), a Chinese
mining company which holds a 100% interest in the Longwangshan Gold
Mine, located in Shuikuoshan mining district, Hunan, China. The Longwangshan Gold Mine is a
fully permitted 1000 tonne-per-day open pit mine with a mill and
smelter on site. The estimated purchase price for the 70% equity
interest in Longxin Mining under the preliminary agreement is a
range of 147-168 million Remnimbi (28-32 million Canadian).
Under the preliminary agreement, the Company, through its wholly
owned subsidiary, Minco Mining (China) Co., Ltd. ("Minco China"), has
exclusive rights to acquire 70% of the equity interests in the
Longwangshan Gold Mine. The preliminary agreement was negotiated
between the Company and the existing shareholders of Longxin Mining
on an arms-length basis. The Company is conducting a full due
diligence review of Longxin Mining and the Longwangshan Gold Mine,
including a drilling program to verify the reserves and resources
of the mine.
In conjunction with the proposed acquisition, Minco China has
also entered a loan agreement with Longxin Mining and its
shareholders pursuant to which Minco China has provided the
shareholders with a convertible loan of 74.8 million Reminbi (the
"Loan"). The term of the Loan is six months and bears interest at
the rate of 10% per annum. The Loan is fully secured by the
shareholders' 100% equity interest in Longxin Mining and all assets
of the Longwangshan Gold Mine. In addition, the Loan has been fully
guaranteed by the shareholders of Longxin Mining and a significant
real estate company controlled by them. If the results of the due
diligence program are positive and the Company decides to proceed
with the acquisition, the Loan will be converted into equity in
Longxin Mining and thereby credited towards the purchase price. If
the Company decides not to proceed with the acquisition, then the
Loan, together with all accrued interest, shall be repaid in
full.
Further announcements with respect to the acquisition, the
Longwanghsan Gold Mine and the final purchase price will be made
following the completion by the Company of its due diligence
investigation, expected to be completed within three months.
About Minco Silver
Minco Silver Corporation is a TSX and OTCQX listed company
focusing on the acquisition and development of silver dominant
projects. For more information on Minco Silver, please visit the
Company's website at www.mincosilver.ca or contact Jennifer Trevitt, at 1-888-288-8288 or (604)
688-8002 pr@mincosilver.ca
SOURCE Minco Silver Corporation
