TSX-V: GMN
TORONTO, Aug. 17,
2022 /CNW/ - (TSXV: GMN) GobiMin Inc.
("GobiMin" or the "Company") today announces, further
to its July 14, 2022 press release,
that it has received a net amount of RMB420
million (CAD81 million),
being the first instalment (the "First Instalment") of
RMB411 million (CAD79 million) and an additional RMB33 million (CAD6.3
million) consisting in the settlement of loans due from
HoldCo (as defined hereinafter) and ProjectCo (as defined
hereinafter) to the Company (the "Loan Consideration"), net
of applicable taxes and transaction related expenses, in connection
with the disposal (the "Transaction") of its Sawayaerdun
Gold Project to Zijin Mining Group Northwest Co., Ltd., a
subsidiary of the multinational mining group Zijin Mining Group
Co.
In accordance with the requirements of the TSX Venture
Exchange's (the "TSXV") conditional approval letter, the
Company is also pleased to confirm that it has secured
shareholders' approval for the Transaction pursuant to the TSXV
policies by way of written consent of the holders of the majority
of the common shares in the capital of the Company.
The change in industrial and commercial registration of the
equity transfer with the local authority was also completed and the
handover process is in progress.
Transaction Overview
The Transaction consists in the sale of the 100% indirect equity
interest in a GobiMin's wholly owned subsidiary ("HoldCo"),
which owns a 70% indirect equity interest in the company holding
the mining licence of the Sawayaerdun Gold Project
("ProjectCo"), for RMB494
million (CAD95 million) (the
"Total Consideration"), which will result in net proceeds to
the Company of approximately RMB469.87
million (CAD90 million) after
payment of Chinese taxes and transaction related expenses (the
"Net Proceeds").
The Total Consideration is comprised of consideration for equity
transfer of RMB461 million
(CAD89 million), of which the First
Installment was received, and the Loan Consideration of
RMB33 million (CAD6.3 million).
The final installment of RMB50
million (CAD9.6 million) is
currently held in an escrow account, and will be released to the
Company within 35 days. The Transaction is expected to be
completed with full receipt of the Net Proceeds on or before
September 30, 2022.
The Transaction is an arm's length transaction as defined in the
policies of the TSXV. No finder's fee will be paid in connection
with the Transaction.
About the Company
GobiMin, the shares of which are traded under the symbol GMN, is
an investment issuer under the rules of the TSXV. It is principally
engaged in the investment in properties, equity, debt or other
securities as well as direct ownership stakes in various
projects.
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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SOURCE GobiMin Inc.
