Minco Announces Sale Of Changkeng Gold Project

(RTTNews) - Minco Gold Corp (MGH, MMM.TO) on Friday entered into a share purchase agreement with Minco Silver Corp and Minco Silver's subsidiary, Minco Investment Holdings HK Ltd, as purchaser, providing for the sale of the company's 51% undivided interest in the Changke ng gold project for an aggregate purchase price of $13.73 million, subject to certain adjustments.

The company said it intends to use the proceeds from the deal to pursue strategic mineral acquisitions, joint ventures or other transactions outside of China.

The Changkeng gold project is held by Guangdong Mingzhong Mining Co Ltd, a Chinese corporation owned 51% by two indirect wholly owned subsidiaries of Minco Resource Ltd, itself a subsidiary of the company, with the remaining 49% held by an unrelated third party.

Following completion of the sale, Minco Silver will continue to hold, directly or indirectly, the other projects in trust for the benefit of the company. The company will also continue to hold its investment of 11 million common shares in Minco Silver.