GobiMin Inc. (TSX-V: GMN) is pleased to announce that it has entered into a definitive agreement to sell the 100% indirect equity interest in a wholly-owned subsidiary, which owns the 70% indirect equity interest in the company holding the mining licence of the Sawayaerdun Gold Project, to a subsidiary of a Hong Kong listed mining company which is an independent third party to the Group for approximately CAD95 million (USD74 million) in cash, which will result in net proceeds to the Company of approximately CAD88 million (USD68 million) after payment of Chinese taxes and transaction related expenses.

The Group shall receive from the Buyer the consideration, net of the withholding tax payable to China, after the registration of the equity transfer with the local authority and the completion of the handover. The Disposal is expected to be completed on or before September 30, 2022. 

Mr Felipe Tan, president and Chief Executive Officer of GobiMin commented as follow: “the decision to sell the Gold Project has been arrived at a careful consideration of all options open to us under the current economic and market conditions. The Disposal enables the Group to maintain a strong financial position and the net proceeds from the Disposal can be used for pursuing new business opportunities.”

The Disposal is an arm’s length transaction as defined in the policies of the TSX Venture Exchange.

About the Company

GobiMin is an investment issuer under the rules of the TSX Venture Exchange. The Group is principally engaged in the investment in properties, equity, debt or other securities as well as direct ownership stakes in various projects.