Dec 22/99-SMH.CDNX-Pursuing Acquisition of Zinc Mine in Guangxi Province, China
Shoreham Resources Ltd.
for immediate release
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December 22, 1999
CDNX Trading Symbol: SMH
Shoreham to Pursue Acquisition of Operating Zinc Mine in Guangxi Province, China
Shoreham Resources Ltd. (the Company) announces that it has reached an agreement in principle to pursue the acquisition of an operating primary zinc mine and related facilities in the Beishan Mining District, Guangxi Province, China which is north of the city of Hechi. The county government currently owns 100% interest in the operation and it is expected they will retain approximately 25% interest. The mine currently produces 1500 tons per day of primary sulfide zinc ore from an underground operation, which is processed both in its mill and in other nearby milling facilities. The run of mine grade is 6% zinc and 2% lead. At the current rate of mining, the reported reserves are sufficient for 10 to 15 years of operation.
The acquisition will be completed through the issuance of Shoreham Resources Ltd. common shares, subject to regulatory approval. Shoreham's technical representatives will travel to China in early 2000 to audit the economics of the project and review the reported proven reserve figures. After the review, the Company will meet to determine the specifics of the share issuance required to complete the acquisition. Upon acquisition, Shoreham's plan of business will be to aggressively and significantly increase production and install additional ore processing equipment, including a new zinc smelter capable of handling the concentrate production from the mining area. The planned program of infrastructure expansion will be conducted with the infusion of new capital from East Asian and/or North American sources. The net revenue from the operation is currently over 9.9 million RMB or US$1.2 million per year after all taxes.
Shoreham believes this project will proceed rapidly through the approval process as other foreign investment has been successfully completed in the province.
On behalf of the Board of Directors
SHOREHAM RESOURCES LTD.
Thomas W. Sieh, President
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Website: shoreham.com |
