Dragon Mountain Gold Limited (DMG) is pleased to announce that it’s majority owned subsidiary, Warrior Advance Pty Ltd has entered into a conditional agreement to sell 100% of the issued shares in its subsidiary that holds the Lixian Gold Project in China to ZiJin Mining Group Co Ltd for consideration of AUD $175,000,000. It is expected that DMG’s share of the consideration will be approximately $150,000,000. Zijin has recognised the quality and size of the Lixian Gold Project and it gives the ability to consolidate the ground holdings and make a much larger mining operation that will compliment the mining operation and growth that exist within Zijin.
Zijin is a Shanghai and Hong Kong listed public company with a market capitalisation of more than $US12 billion and extensive interests across a broad range of commodities, including gold, copper, zinc, lead, tungsten and iron ore. The Company and Warrior have entered into a conditional agreement to sell 100% of the issued shares in Long Province Resources Limited, a Hong Kong incorporated company, to Zijin and its subsidiary for a cash consideration of $175,000,000.
DMG’s Chairman, Mr Robert Gardner commented: This sale of the Lixian Gold Project is an exciting step in the future of DMG. There are a number of steps required prior to Completion and the board will keep shareholders informed as these progress. The sale, when completed, would leave DMG in a very strong cash position. The proceeds of the sale would allow the Company to actively pursue other investment opportunities in the resources industry.