China Hongxing to acquire gold mine projects in the Philippines |

China Hongxing to acquire gold mine projects in the Philippines

SINGAPORE: The Board of Directors of China Hongxing Sports Limited has signed a conditional sale and purchase agreement with Mining and Mineral Industries Holding Pte. Ltd. To acquire the issued and paid-up share capital in MMJV Pte. Ltd. MMJV is a Singapore registered company that holds two joint venture agreements to own two gold mine concessions in the Philippines, including a 761.40 hectare gold mine project located in the province of Misamis Oriental, Philippines (Mindanao Project); and a 3619.10 hectare gold mine project located in the towns of Cordon and Diadi in the provinces of Isabela and Nueva Vizcaya, Philippines (Luzon Project).[the_ad id="31605"]The proposed transaction would allow China Hongxing to apply to SGX-ST for an extension of time and removal of its cash company status. The Board of the Company therefore believes that the proposed transaction will provide an opportunity for the company to remain listed and to acquire a new business with the potential for growth. Alfred Cheong, Independent Director and Chairman of the Audit Committee of the China Hongxing, commented: “We hope that this proposed transaction will bring a better closure for everyone. It will be able to bring new value to all shareholders of China Hongxing as the Company embarks on a new and exciting journey with the newly injected business.” The consideration payable for the MMJV shall be the lower of S$100million.The consideration will be satisfied by the allotment and issuance of new ordinary shares in the capital of the China Hongxing to the vendor at an issue price of S$0.00357 per consideration share. Ashok Agrawal, Director of Mining and Mineral Industries Holding, commented: “The Philippines holds the world’s second largest gold reserve and foreign mining firms are lining up to gain access to these untapped reserves. As an early mover, we have two high potential projects in hand and in advance negotiation for other high potential projects. The proposed transaction will give us the opportunity to take all these projects forward.”
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