Press Release  

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[30 October 2013 – Hong Kong] In order to further develop polymetallic business, Wanguo International Mining Group Limited (“Wanguo International” or the “Company”, stock code: 03939) announced that Jiangxi Province Yifeng Wanguo Mining Company Limited (Yifeng Wanguo”), a wholly-owned subsidiary of the Company, entered into a framework agreement on 26 October 2013 with Mr. Liu Dingbo, Mr. Yang Zhi and Mr. Wen Baolin (collectively referred as the “Vendor”). The Company intended to acquire (“Possible Acquisition”) from the Vendor a 51 per cent equity interest in Xizang Changdu Changdu-County Dadi Mining Company Limited (the “Target Company”), mainly for the exploration right of Walege lead-mine owned by the Target Company, which will be beneficial to the Company’s future capacity expansion. The Walege lead-mine is located in Changdu County, Tibet Autonomous Region, the People’ Republic of China (the PRC”).

 

According to the Company’s prudent development strategy, the consideration for the Possible Acquisition shall be subject to negotiation and a formal legally binding agreement between both parties after the Company has finished the due diligence review, within 90 days from the date of the framework agreement.

 

 

In view of the exclusivity of the Possible Acquisition, Wanguo International agrees to pay a sum of RMB9.6 million (the “Deposit”) to the Target Company for continuing exploration work within 30 days from the date of the framework agreement. The Deposit shall be refunded to the Company if the Company decides not to proceed with the Possible Acquisition, or if both parties shall enter into a formal agreement, such Deposit shall form part of the payment of the consideration for the Possible Acquisition payable to the Vendor.

   

The exploration right possessed by the Target Company of Walege lead-mine, located in Changdu County, Tibet Autonomous Region, the PRC, covers an area for exploration of approximately 21.87 sq km. As of the date of the framework agreement, the Target Company had completed detailed prospecting in some area. In accordance with resources and reserves under latest prospecting, there are more than 1,000,000 tons of contained lead and more than 1,100 tons of contained silver. It attained the lower limits of two large-scale lead-mines and one large-scale silver-mine under the classification of Chinese Mining Resources and Reserves.  

 

 

Mr Gao Mingqing, the Chairman of Wanguo International, said: “We are glad to enter into a framework agreement for the Possible Acquisition. The Group will continue to consolidate its market position and to capture the opportunities arising from growing market demand for lead and silver metal through prudent mergers and acquisitions to expand operation scale. Upon completion of the Possible Acquisition in future, it will help the Group to increase its market penetration and to further strengthen its market share.” 

 

Wanguo International plans to produce 500,000 tonnes per annum in 2013 and expects to increase its production capacity up to 600,000 tonnes in 2014. The Company will focus on developing copper concentrates and iron concentrates. 

 

About Wanguo International

Wanguo International Mining Group Limited is principally engaged in the business of mining, ore processing and sale of concentrates products in the PRC and its core products are copper concentrates and iron concentrates. The Group currently, through its wholly-owned subsidiaries, owns the entire equity interest in Yifeng Wanguo, which in turn owns the Xinzhuang Mine. The Xinzhuang Mine, managed by Yifeng Wanguo, is principally engaged in the business of mining, ore processing and sale of copper, iron, zinc and lead, while the production system of the Xinzhuang Mine is divided into mining system and processing system. Wanguo International is established in 2003 and its shares are listed on the main board of The Stock Exchange of Hong Kong Limited since 10 July 2012 (stock code: 03939.HK).