|June 14, 2004|
MINCO SIGNS AN AGREEMENT WITH CHINA GOLD GEOLOGICAL CORPORATION AND ESTABLISHES A WHOLLY-OWNED SUBSIDIARY IN CHINA
|Minco Mining & Metals Corporation (TSX: MMM) ("MINCO") is pleased to announce that it has signed a framework joint venture agreement with China Gold Geological Corporation ("CGGC"), a wholly-owned exploration arm of China National Gold Corporation ("CNGC"), for mineral exploration, development and production in China. Pursuant to the terms of the agreement, both parties will restructure one of MINCO''s joint venture companies in China, Chende Huajia Mining Co., Ltd. ("Huajia"). Huajia is an inactive company, previously owned 55% by MINCO and 45% by The First Geological Exploration Institute ("FGEI") of The Bureau of Metallurgical and Geological Exploration of China (formally known as The Geoexploration Corporation of the First Geoexploration Bureau). The equity interest in the restructured Huajia will be MINCO 55%, CGGC 40% and FGEI 5%. |
Under the agreement, CGGC and FGEI will contribute their mineral properties for their respective equity interests in Huajia. MINCO will select properties for independent valuation and MINCO's financial obligations to the joint venture will be determined from valuation of the properties finally chosen. The parties to the joint venture intend to establish a publicly-listed company in North America to access Western financial markets.
CNGC which was founded in 1979 as a state mining company to control the bulk of the gold mining sector in China, was restructured in 2003 through government privatization initiatives. CNGC is China's largest gold producer, with output of over 1 million oz gold per annum or approximately 20% of total Chinese gold production. CNGC operates 8 gold mines and controls 61 gold mining-related subsidiary companies throughout China. It is a Council Member of the Shanghai Gold Exchange, and is the only Chinese member of the World Gold Council.
MINCO is also pleased to announce that it has incorporated a wholly-owned subsidiary, Minco Mining (China) Corporation ("Minco China") in Beijing, China, for which it has received all required government approvals and a business licence. Minco China will provide MINCO better access to mineral properties in China, including the development of strategic partnerships, cooperation with strong Chinese mining organizations, and the ability to stake mineral properties directly. With increasing activities and a firm commitment to China, Minco China will be MINCO's main platform to manage its affairs and to consolidate its assets in China.
"MINCO is very pleased with the above strategic developments in China, particularly the joint venture agreement with CGGC" said Dr. Ken Cai, the President and CEO of MINCO, "MINCO is now well-positioned to capitalize on its significant achievements since 1994 where it has built up joint venture positions in exceptional gold, silver and base metal properties. Through Minco China we can move forward to acquire new mineral properties directly and accelerate the process of bringing our present properties to the feasibility study stage as a first prority."
The company has successfully conducted its Annual General Meeting of shareholders held June 8, 2004. Dr. Ken Cai, Messrs. William Meyer, Robert Callander, Hans Wick, and Dr. Robert Gayton have been elected as Directors of the Company.