Shengda Group Acquires 52 Percent of Sino-Top From Silver Dragons Chinese Joint Venture Partneradmin
Silver Dragon Resources Inc. announce that Gansu Shengda Group Ltd., a private Chinese conglomerate, has agreed to acquire 52% of the equity interests in Sanhe Sino-Top Resources & Technologies, Ltd. from Huaguan Industrial Corp., Silver Dragon’s state-owned Chinese joint venture partner.
Shengda and HIC have entered into an agreement whereby HIC will transfer 52% of its stake in Sino-Top to Shengda’s mining investment arm, Beijing Shengda Zhenxin Industrial Corporation. As a future 40% minority owner of Sino-Top, Silver Dragon has consented to this transfer. There will be no material impact on the original equity transfer agreement signed between Silver Dragon and HIC, which is currently undergoing the final stages of approval by the Chinese government.
“We are excited that Shengda will become our main Chinese joint venture partner as we transition from an explorer to a producer,” commented Mr. Marc Hazout, President and CEO of Silver Dragon Resources Inc. “As a major Chinese silver producer, Shengda is well-funded as well as highly-experienced in mine development and production. Shengda’s participation in our Sino-Top joint venture will no doubt magnify the value of our Chinese assets.”
“We are very pleased to acquire a majority stake in Sino-Top,” commented Mr. Mantang Zhao, chairman and chief executive of Shengda, who also serves as chairman of the board of Sino-Top. “We are committed to accelerating the development of the Sino-Top properties and maximizing shareholder value.”