This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China Shen Zhou Subsidiary Signs Agreement To Acquire 60% Of Qianshi Resources And Meilan Mining In Guizhou Province

Stocks in this article: SHZ

BEIJING, Feb. 8, 2012  /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (" China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that its subsidiary, Xiangzhen Mining Ltd. ("Xiangzhen"), located in Inner Mongolia, has signed equity transfer agreements with the shareholders of Qianshi Resources Development Company Ltd. ("Qianshi Resources") and Meilan Mining Company Ltd. ("Meilan Mining"), based in the Tujia autonomous county of Tongren city, Guizhou Province, whereby Xiangzhen will acquire 60% ownership of each company's equity.

Qianshi Resources and Meilan Mining are primarily engaged in the mining, mineral processing, production and sales of fluorite and barite. Qianshi Resources has registered capital of RMB 1 million (US$ 157,480), and holds 100% of the mining rights to the Jingliang mine and the processing flotation plants in Huangtu town. Meilan Mining has registered capital of RMB 1.334 million (US$ 211,024), and holds 100% of the mining rights to the Fengshuiling mine of Banchang county. Prior to the agreement with Xiangzhen, both Qianshi Resources and Meilan Mining were wholly owned by two individual investors respectively.

According to the terms of the agreement, Xiangzhen will use 337,457 of China Shen Zhou's common shares, which is equivalent to RMB 6 million (approximately US$94,482, assuming a price of US$2.80 per share and an exchange rate of US$1= RMB 6.35) to acquire a 60% ownership stake in Qianshi Resources's equity, leaving the two original owners holding a 40% stake in Qianshi Resources's equity. Xiangzhen will use 506,186 of China Shen Zhou's common shares, which is equivalent to RMB 9 million (approximately US$1,417,323) to acquire a 60% ownership stake in Meilan Mining's equity, leaving the two original owners holding a 40% stake in Meilan Mining's equity.

The Jingliang mine's resources of fluorite and barite are estimated to be 100,000 metric tons and 200,000 metric tons, respectively. The annual ore processing capacity of the fluorite floatation plant of Qianshi Resources in Huangtu town is estimated to be 60,000 metric tons per year, which is expected to increase to 100,000 metric tons per year once a technology upgrade is completed. Fengshuiling mine's resources of fluorite and barite are estimated to be 400,000 metric tons and 600,000 metric tons, respectively. All estimated reserves require further verification.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,612.94 +256.07 1.48%
S&P 500 2,039.88 +26.99 1.34%
NASDAQ 4,706.6420 +62.33 1.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs