Arehada Receives Safe Approval
April 29 2014 - 11:32AM
Marketwired
Arehada Receives Safe Approval
TORONTO, ONTARIO--(Marketwired - Apr 29, 2014) - Arehada Mining
Limited ("Arehada" or the "Company") (TSX-VENTURE:AHD.H) is pleased
to announce that it has received approval of the State
Administration of Foreign Exchange of China ("SAFE") with respect
to the sale by Arehada's wholly-owned subsidiary, Arehada
(Barbados) Corporation ("Arehada Barbados"), of all of the shares
it held in Arehada's Chinese operating company, to Shanjin Mining
Corporation ("Shanjin"), a Shandong based Chinese mining company,
pursuant to an agreement dated February 11, 2010. The SAFE approval
is the last regulatory approval required to release the sale
proceeds to the Company from the bank account jointly controlled by
the Company and Shanjin.
After deduction of RMB 74.82 million in tax payment made by
Shanjin on behalf of the Company but before payment of other
liabilities of the Company, a total of approximately RMB 621.77
million, will be released to the Company from Shanjin. The funds to
be received by the Company will be held in the Company's newly
acquired subsidiary Yunnan Xuming Tiancheng Tourism Development Co.
Ltd. ("Tiancheng") of which the Company holds, through Arehada
Barbados, a 92.98% equity interest by investing RMB 225 million in
registered capital and a debt investment of RMB 396.77 million.
The Company plans to call an annual and special meeting of
shareholders to be held on or about June 27, 2014 (the "Meeting")
to approve, among other things, the voluntary dissolution of the
Company. If the voluntary dissolution is approved by the
shareholders, and subject to receipt of all required regulatory
approvals, the Company will liquidate all of its assets, including
its holdings in Tiancheng, satisfy all of its liabilities,
distribute all remaining assets to its shareholders, and dissolve
the Company.
Forward Looking Information
The above contains forward looking information that is subject
to a number of known and unknown risks, uncertainties and other
factors that may cause actual results to differ materially from
those anticipated in our forward looking statements. Generally,
forward looking information can be identified by the use of forward
looking terminology such as "plans", "expects", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might", or
"will be taken", "occur", or "be achieved". Forward looking
information in this press release relates to the management's
expectation on receipt of sales proceeds from the jointly
controlled bank account and on placing the funds in Tiancheng,
management's plan on calling a shareholders' meeting, the expected
date of the meeting and anticipated businesses to be approved at
the shareholders' meeting, management's expectation of receiving
shareholders' approval for the dissolution, management's
expectation on receipt of regulatory approvals for the dissolution,
and management's expectation on liquidation of the assets,
satisfaction of all liabilities, distribution of remaining assets
to shareholders and completion of the dissolution. Although we
believe the expectations reflected in our forward looking
information are reasonable, results may vary, and we cannot
guarantee future results, levels of activity, performance or
achievements. Readers should not place undue reliance on forward
looking information.
Arehada Mining LimitedBetty Si-Ge WangAssistant
Secretarybestarehada@aliyun.comArehada Mining LimitedGraham
WarrenChief Financial
Officer416-594-0473gwarren@arehadamining.com