TORONTO, Aug. 5, 2014 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") is pleased to announce that, further to its press release of April 23, 2014, the Company's 48.02% owned associate, China Precision Material Limited ("CPM"), has reorganised its capital structure and all the shares held by the existing shareholders of CPM have been swapped for the shares of a newly incorporated Hong Kong company, Loco Hong Kong Holdings Limited ("Loco HK"). Loco HK completed a placement of 120,000,000 placing shares at USD0.05 (HKD0.36) per share and raised gross proceeds of approximately USD6 million (HKD43,200,000). The dealings in the shares of Loco HK on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited commenced on August 5, 2014 under the stock code "8162".
Concurrently with its listing process, Loco HK completed the repayment of approximately USD3.6 million originally due to GobiMin Silver Limited ("GobiMin Silver") from CPM by issuing 110,858,022 shares at a price of USD0.03 (HKD0.25) per share to GobiMin Silver. All outstanding balance due from CPM are fully settled.
Furthermore, each of GobiMin and its two wholly owned subsidiaries, namely GobiMin Investments Limited and GobiMin Silver, as well as its Chief Executive Officer, Mr. Felipe Tan, entered into a non-competition undertaking and a tax indemnity in favour of Loco HK and all the 192,080,000 shares in Loco HK held by GobiMin Silver are subject to a twelve (12) months non-disposal undertaking.
The market capitalisation of Loco HK upon listing is approximately USD18.5 million (HKD144,000,000) with a total number of issued shares of 400,000,000. The equity interest of GobiMin, through GobiMin Silver, in Loco HK remains approximately 48.02% with a market value of USD8.89 million (HKD69,148,800).
Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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SOURCE GobiMin Inc.