Minco Silver Purchases Stake in Sichuan Hexie Shuangma Cement Company
Summary
VANCOUVER, BC, Oct. 19, 2022 /CNW/ - Minco Silver Corporation (the "Company" or "Minco Silver") (TSX: MSV) (OTCQX: MISVF) (WKN: A0ESX5) is pleased to announce that it has entered into a transfer agreement to acquire a stake in Sichuan Hexie Shuangma Co., Ltd. ("Hexie"), one of the largest cement manufacturing companies in China and the owner of several limestone mines.Under the transfer agreement, the Company, through its wholly owned subsidiary, Minco Mining (China) Co., Ltd. ("Minco China"), will acquire an interest in the Tianjin Saikehuan Enterprise Management Center Limited Partnership (the "Saikehuan LP") from Tianjin Huaxin Anneng Management Consulting Partnership LP ("Huaxin") for RMB 119,762,699 (CAD$23.04 million) in cash. The preliminary agreement was negotiated between the Company and Huaxin on an arms-length basis.The purchase price was funded exclusively from Minco Silvers surplus working capital, and represents an opportunity to earn a greater return than through traditional banking investments. The Company did not anticipate requiring this capital for other purposes in the foreseeable future.In conjunction with the proposed acquisition, Minco China has also entered into a restructuring and distribution agreement with Saikehuan LP and its general partner pursuant to which the parties will use their best efforts to restructure the Saikehuan LP to initiate Minco China as a direct holder of the Hexie Shares with the right to trade those shares directly on behalf of the Saikehuan LP. Under the terms of this restructuring agreement, the Company will be entitled to recoup its entire purchase price from the proceeds of any sale of Hexie shares. Once the purchase price has been recouped in full, all remaining proceeds will be divided as to 20% to the general partner, with the remaining 80% distributed to Minco China.The above transaction has been approved by Minco Silvers board and Toronto Stock Exchange.For further information: on Minco Silver, please visit the Companys website at www.mincosilver.ca or contact: the Company at 2060 - 1055 W. Georgia St., Vancouver, BC, Canada, V6E 3R5, Tel: (604) 688-8002, Fax: (604) 688-8030, E-mail: [email protected], Website: www.mincosilver.ca.