SDRG StockQuote

See Details

Investor Center

Breadcrumb

  1. Home
  2. Investor Center >
  3. News Releases >
  4. News Release

Stay Connected

Join our social network and stay informed about our financial updates and projects

Quick Contact
Corporate Head Offices

Silver Dragon Resources Inc.
200 Davenport Road
Toronto, Ontario M5R 1J2
Canada

Phone: 416-223-8500
Toll Free(North America): 1-866-512-SDRG (7374)
Fax: 416-223-8507
info@silverdragonresources.com

Send us an email

View all contacts

News Release

Silver Dragon’s Sino-Top Joint Venture Signs Definitive Agreement to Sell Saihanaobao and Liangdi Properties to Chinese State-owned Entities for USD$4.2 Million

BEIJING, January 21, 2010 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce the sale of its Saihanaobao and Liangdi properties for total consideration of RMB28.5 million, or USD$4.2 million.  Saihanaobao and Liangdi were sold by Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top"), a Chinese entity in which Silver Dragon has a 40% equity interest.  Sino-Top was recently awarded the prestigious Prospector/Explorer of the Year Award at the 2009 China Mining Congress & Expo for its Dadi Silver Polymetallic Project (see press release dated October 22, 2009).

The properties were sold to Tianjin Huakan Mining Investment Ltd. ("Huakan") and North China Geological Exploration Bureau, both of which are Chinese state-owned entities.  Huakan is the mining investment arm of Tianjin North China Geological Exploration Bureau, which is also a state-owned entity and 100% owner of Huaguan Industrial Corp. ("HIC"), the exploration arm of the North China Geological Exploration Bureau. 

Under the terms of the sale agreement, Huakan is responsible for 60% of the total sale amount, the remaining 40% of which will be paid by HIC.  Also according to the sale agreement, Sino-Top shall be paid in three installments as follows: (i) 50% within ten business days of the signing of the sale agreement; (ii) 30% within five business days of government issuance of an official notification letter commencing the property transfer process; and (iii) 20% within five business days of the issuance of a new exploration license.

Saihanaobao (89.23 square kilometers) and Liangdi (32.03 square kilometers) are two of Sino-Top’s eight wholly-owned exploration properties.  Sino-Top has invested approximately RMB11 million (USD$1.6 million) in exploration on these two properties since they were acquired five years ago.

“The sale of Saihanaobao and Liangdi fits Sino-Top’s overall corporate strategy of transitioning from explorer to producer,” commented Mr. Mantang Zhao, Chairman of Sino-Top and Chairman and CEO of Sino-Top’s 52% majority owner, Gansu Shengda Group Ltd.  “By divesting ourselves of non-core assets, we can focus our efforts on the premium Dadi and Laopandao properties for accelerated exploration and mine development.”

“By monetizing these two assets at a premium, we can accelerate the development of our award winning Dadi project, which we believe will significantly increase shareholder value,” commented Marc Hazout, President and CEO of Silver Dragon. “The Dadi resource estimate report is expected to be released this quarter, commencing the acceleration process.”

About Sino-Top – China Mining 2009 Award Winner

Sanhe Sino-Top Resources & Technologies, Ltd. (``Sino-Top'') was originally incorporated in 2003 as a Chinese company wholly owned by Huaguan Industrial Corp. (``HIC''), a subsidiary of state-owned entity North China Geological Exploration Bureau. Sino-Top became an American-Chinese joint venture in 2005.  Silver Dragon Resources Inc. acquired Sino-Top in 2006, and currently owns 40% of Sino-Top after having sold 50% of its ownership interest to its Chinese partners. The Chinese side, led by Gansu Shengda Group Ltd. (“Shengda”), at 52%, and HIC, at 8%, collectively owns 60% of Sino-Top.  Following the divestitures of Saihanaobao and Liangdi, the company holds exclusive exploration rights to six properties in northern China (Inner Mongolia), covering a total area of 139 km2. Sino-Top won the prestigious Prospector/Explorer of the Year Award for its Dadi Silver Polymetallic Project at the China Mining Congress & Expo 2009 held in Tianjin, China, during October 20-22, 2009.

About Silver Dragon Resources Inc.:
Silver Dragon Resources Inc. is a mining and metals company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing Cerros las Minitas in Mexico, Its six Sino-Top properties which include Dadi and Laopandao in China, and its Erbahuo Silver mine under Chifeng Silver Dragon also in China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical, such as statements regarding the exploration and development of the Dadi Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results, are forward-looking statements.  Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur. Information inferred from the interpretation of assay results and information concerning mineralization zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.  
Contact Silver Dragon Resources Inc.

Marc Hazout
President
(416) 223-8500 or Toll Free: 1-866-512- SDRG (7374)
Email: info@silverdragonresources.com

Footer

Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically or legally extract or produce. We may use certain terms on this website such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated" or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K. You can review and obtain copies of the latest Form 10-K filing from the SEC's website at http://www.sec.gov/edgar.shtml.