- GobiMin (GMN) has agreed to sell its equity interest in a subsidiary holding the mining licence of the Sawayaerdun Gold Project
- The group will sell the 100 per cent indirect equity interest to a subsidiary of a Hong Kong-listed mining company
- The sale will be for approximately C$95 million (US$74 million) in cash and will result in net proceeds to the company of approximately C$88 million (US$68 million)
- GobiMin is an investment issuer engaged in the investment in properties, equity, debt or other securities as well as direct ownership stakes in various projects
- GobiMin Inc. remained unchanged at C$0.20 when the market opened
GobiMin (GMN) has agreed to sell its 100 per cent indirect equity interest in a wholly-owned subsidiary.
The wholly-owned subsidiary of GobiMin owns the 70 per cent equity interest in the company holding the mining licence of the Sawayaerdun Gold Project.
GobiMin Inc. with its subsidiaries will sell the 100 per cent indirect equity interest in the subsidiary to a subsidiary of a Hong Kong-listed mining company (the buyer) is an independent third party to the group.
The sale will be approximately for C$95 million (US$74 million) in cash.
This sale will result in net proceeds to the company of approximately C$88 million (US$68 million) after payment of Chinese taxes and transaction-related expenses.
The group shall receive from the buyer the consideration, net of the withholding tax payable to China, after the registration of the equity transfer with the local authority and the completion of the handover.
The disposal is expected to be completed on or before September 30, 2022.
“The decision to sell the Gold Project has been arrived at a careful consideration of all options open to us under the current economic and market conditions,” said Felipe Tan, President and Chief Executive Officer of GobiMin.
“The disposal enables the group to maintain a strong financial position and the net proceeds from the disposal can be used for pursuing new business opportunities,” he added.
The disposal is an arm’s length transaction as defined in the policies of the TSX Venture Exchange.
GobiMin is an investment issuer engaged in the investment in properties, equity, debt or other securities as well as direct ownership stakes in various projects.
GobiMin Inc. remained unchanged at C$0.20 when the market opened.