Data source: S&P Global Market Intelligence
9th April 2018
China Mining Resources Group Ltd. said April 6 that it agreed to sell its approximately 80% shareholding in King Gold Investments Ltd. and debt amounting to HK$51.1 million to a Chinese businessman for HK$121.1 million.
The buyer is required to pay HK$70 million within 10 days of deal signing, with the transaction expected to close three days after that.
Upon deal completion, China Mining will no longer own any shares of King Gold and the latter will cease to be the company’s subsidiary.
King Gold is primarily involved in production and sale of tea products. The company’s audited net asset value is approximately HK$56.0 million as of Dec. 31, 2017.
China Mining’s board has been reviewing the tea business and believes the disposal of the business will enable the company to focus on its profitable gold mining business and optimize its financial structure.
The company expects to record a gain of approximately HK$109 million in connection with the sale. The proceeds from the sale are expected to improve the financial position of the company and will be used as additional general working capital.
In late February, China Mining’s board proposed a name change to Tongguan Gold Group Ltd., reflecting its principal business development and strategic direction as it expands gold mining operations in China.