From the Wires
China Daye Enters into MOU with Parent Group
To be Injected Parent Group's Four Existing Mines and Two New Mines
By: PR Newswire
Nov. 16, 2012 04:08 AM
HONG KONG, Nov. 16, 2012 /PRNewswire/ -- China Daye Non-Ferrous Metals Mining Limited ("China Daye" or the "Company") (Stock Code: 00661.HK) is pleased to announce that the Company, China Times Development Limited ("China Times") and Daye Nonferrous Metals Corporation Holdings Limited (the "Parent Company", together with its subsidiaries, the "Parent Group") has entered into a memorandum of understanding (the "MOU") on 15 November, to inject into the Company the interest in four mines (the "Existing Mines") currently held by the Parent Group and two mines (the "New Mines") proposed to be acquired by the Parent Group from the relevant government authorities in China.
To support the Company's development, the Parent Group and China Times proposed within the next three to five years, to inject into the Company the interest in four existing mines currently held by the Parent Group, including:
Amidst, substantial progress has been made with respect to the exploration of reserves of the Guokesu Mine; the scale of operations of the Jilong Mountain Mine has expanded and has generated revenue and profit and the Lini Mine has commenced trial production.
In addition, the Company will be injected two new mines in Hubei Province that proposed to be acquired by the Parent Group from the relevant government authorities in China, including a rutile mine in Zaoyang and niobium and cerium rare-earth mine in Miaoya, Zhushan.
Mr. Zhang Lin, Chairman of China Daye, commented, "The management of the Company considers it an opportune time for the Company to acquire the Guokesu Mine, Jilong Mountain Mine and Lini Mine within the next three to five years. The signing of MOU, another important step further to the reverse acquisition of Parent Company completed in early March this year, is in the best interests of the Company and its shareholders, and it is another major strategic move by China Daye's parent company to float the premier assets of the Parent Company. Look around, market concerns are deepening amid the complicated global and domestic economic conditions. We will ride on the momentum and work against the headwind by leveraging on the favorable opportunity after the successful completion of acquisition for the Group's integration. In addition, we will continue to optimize our production operations, expand our resource reserves and enhance the quality of our products. We believe that with the consistent effort from management and staff of the Group and the strong support from the community, the Group will achieve sustained and rapid development so as to create better returns for our shareholders.
About the Parent Company
Daye Nonferrous Metals Corporation Holdings Limited ("Daye Nonferrous Metals") was jointly owned by the State-owned Assets Supervision and Administration Commission of Hubei Provincial People's Government (51%) and China Nonferrous Metal Mining (Group) Co., Ltd (49%). After over 60 years of development, it evolved into a leading state-owned integrated copper enterprise with a value chain encompassing exploration, mining, smelting, chemicals, rolling processing, waste heat power generation, waste recycling, research and design, geological survey, shaft engineering, construction and installation, machinery repair and manufacturing and transportation. In 2010, it was selected as a major enterprise promoted by the government in the demonstration zone for the materials industry and newly industrialized enterprises in the central China. Daye Nonferrous Metals has a global business network that is spread around the world. It currently has over 20 wholly owned subsidiaries, associates and holding companies in southeastern Hubei, the Yangtze River Delta, the Pearl River Delta, Hunan, Xinjiang, Hong Kong, Kyrgyzstan and Mongolia.
About China Daye
China Daye and its subsidiaries are mainly engaged in exploration, mining and trading of non-ferrous metals.
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SOURCE China Daye Non-Ferrous Metals Mining Limited
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