TSX: MSV; OTCQX: MISVF
VANCOUVER, Feb. 4, 2019 /CNW/ - Minco Silver
Corporation (the "Company" or "Minco Silver") (TSX:
MSV) announces that based on the results of a full
due diligence program completed recently, it has terminated the
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.
As announced in the news release dated September 13, 2018, the Company recently
completed a full diligence program on Longxin Mining and the
Longwangshan Gold Mine, including a drilling program comprised of
15 diamond drill holes. It was concluded from the results of the
drilling program that the reserve and resource estimates do not
meet the Company's criteria for acquisition and it's in the
Company's best interest not to proceed with the acquisition of the
mine.
The Company's wholly owned subsidiary, Minco Mining
(China) Co., Ltd. has
received the full interest payments for the loan of 74.8 million
Reminbi (the "Loan") for the past six months from Longxin
Mining. The due diligence costs have also been reimbursed by
Longxin Mining. The Loan has been extended to June 30, 2019 with increased interest rates of
12% annually, and it is fully secured by 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.
With approximately $45,000,000
working capital, the Company will continue its effort to acquire a
high quality advanced mineral project inside and outside
China.
On Behalf of the Board
"Ken Cai"
President
About Minco Silver
Minco Silver Corporation is a TSX and OTCQX listed company
focusing on the acquisition and development of silver dominant
projects.
SOURCE Minco Silver Corporation
