| ||February 09, 2009|
GobiMin receives the Second Deposit in relation to the Disposal of its Nickel Properties
Toronto, Canada. February 9, 2009 - GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce that on February 6, 2009, it has received the second installment payment of approximately CAD$17.6 million, bringing the total amount received from Xinjiang Xinxin Mining Industry Co., Ltd. ("Xinxin") to RMB344.63 million (CAD$61.50 million). This amount represents 70% of the total sale price for its three nickel-copper properties (Yellow Mountain East, Xiangshan and Yellow Mountain) in Hami, Xinjiang Uygur Autonomous Region ("Xinjiang") of the People's Republic of China ("China") as described in its press release dated November 24, 2008.
On or before February 28, 2009 or when the transfer is approved and registered by the Chinese regulatory authority, whichever is earliest, the final non-refundable installment (30% of the sale price) of RMB147.70 million (CAD$26.4 million), after deducting the Chinese withholding tax (estimated to be CAD$5 million), will be paid to the Company.
Exchange rate used: CAD $1= RMB 5.6
With its CAD$71 million cash position (CAD$1.0 cash per share) as at December 31, 2008, plus the cash received on February 6, 2009 and expected to be received by the end of February 2009, GobiMin will have approximately CAD$115.6 million cash (CAD$1.63 per share). GobiMin is well positioned to advance its mineral exploration and development programs such as its 40% interest in the Yanxi Copper Deposit in Hami, Xinjiang where the Company has received a NI 43-101 compliant Mineral Resource Estimate from Scott Wilson RPA in October 2008. The Company is planning the development of this project, using low-cost mining methods.
GobiMin has four other joint ventures on base metal projects in Xinjiang. GobiMin continues to aggressively seeking opportunities to acquire high grade mining projects either at the exploration, pre-production or production stages.
FORWARD-LOOKING STATEMENTS AND RISK FACTORS
This release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, those associated with our capacity to finance our activities, the price of minerals and other commodities, reliance on subcontractors and key personnel, and other risks and uncertainties detailed from time-to-time in our filings with the Canadian securities commissions. There is no guarantee that the transaction as disclosed in its press release dated November 24, 2008 will be completed or that its terms will not be varied.
Readers should not place undue reliance on forward-looking statements, given that (i) our actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions which were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, could prove to be inaccurate. Additional information about (i) the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information, and (ii) the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, is contained in the Company's annual report and other documents filed from time to time with the Canadian securities commissions and which are available at www.sedar.com.
For further information, please contact:
James Xiang, Chief Financial Officer, GobiMin Inc.
Tel: (416) 915-0133
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