Optimizes business operations by diversifying mining resources
Captures enormous opportunities in quality gold resources
HONG KONG, Jan. 8, 2013 /PRNewswire/ -- China Hanking Holdings Limited ("China Hanking" or the "Company" (Stock Code: 3788), and its subsidiaries, the "Group"), is pleased to announce that on 8 January 2013, the Company, via its wholly-owned Australian subsidiary, Hanking Gold Mining Pty Ltd. ("Hanking Gold"), has entered into an acquisition agreement with St Barbara Limited ("St Barbara"), a company listed on the Australian Securities Exchange (stock code: SBM.AX), to acquire the assets of Southern Cross Operations ("SXO") for a total consideration of AUD22.5 million. The Company will fund the consideration in installments by internal resources.
SXO is a gold mining property located in the centre of the world-famous Yilgarn Goldfields in Western Australia covering approximately 120 kilometres strike length of the Southern Cross greenstone belt, with an accumulated historical gold production in excess of 10 million ounces. SXO currently has approximately 2.4 million ounces at an average grade of 3.6 g/t gold of Australasian Joint Ore Reserves Committee ("JORC") reported Measured, Indicated and Inferred gold resources. According to a preliminary study by the Company, SXO has a potential annual gold production capacity of 200,000 ounces for 10 years and is currently on care and maintenance, and not in production.
By entering into the acquisition agreement, Hanking Gold acquired 100% interests of SXO from St Barbara, including 932 square kilometres of exploration and mining licenses containing the 2.4 million ounces gold resources, mine infrastructure, camps, office buildings, accommodation as well as production equipment and processing plant. The existing gold processing plant has an annual processing capacity of 2.4 million tonnes by using the carbon in pulp and gravity processing methods.
Dr. Pan Guocheng, Chief Executive Officer of China Hanking commented: "Gold mine is closely linked to the capital markets, the acquisition of the Australian SXO gold mine is another significant international business development for the Company after its recent acquisition of a laterite nickel project in Indonesia, which will further enhance our confidence in implementing the strategy of mineral commodity diversification and developing the international market. SXO gold mine possesses high-quality and abundant gold recourses with outstanding production and transportation facilities. Leveraging on the rich experience of China Hanking's senior management in gold mining, production and operations, we will proactively invest in mining and exploration to restore and expand the operations of SXO in order to diversify the revenue sources and profit base which will help to maintain the sustainable growth of our business to maximize shareholders' returns."
About China Hanking Holdings Limited
China Hanking is one of the largest iron ore producers in Northeast China with a proven track record in exploration, production, processing and sales of iron ore for over 15 years. The average grade of the company's iron ore was approximately 66%. As of the end of 2011, the Group has retained 210 million tonnes of iron ore resources and 167 million tonnes of iron ore reserve. Benefiting from China Hanking's competitive cost advantage, its cash operation cost is only half of the average cash operation cost of its Chinese peers. Leveraging on its renowned reputation, the Company has established an extensive customer base as well as long-term partnerships with large-scale steel manufacturers.
China Hanking Holdings Limited was listed on the Main Board of The Hong Kong Stock Exchange in 2011, stock code: 3788.
China Hanking Holdings Limited
Investor Relations
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Ms. Cindy Xin
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Investor Relations
Ms. Cindy Xin
Tel: +852-3150-6771
Fax: +852-3150-6728
Email: cindy.xin@pordahavas.com
Media Relations
Mr. Bunny Lee
Tel: +852-3150-6707
Fax: +852-3150-6728
Email: bunny.lee@pordahavas.com
