Toronto, Canada. March 2, 2009 - GobiMin Inc. ("GobiMin" or the "Company") is pleased to announce that on February 28, 2009, it has received the final installment payment of approximately CAD$26.4 million from Xinjiang Xinxin Mining Industry Co., Ltd. GobiMin has now received full payment of approximately CAD$87.9 million for the sale of 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.
The sales proceeds are held in China in Renminbi currency by a wholly owned subsidiary of the Company pending government's approval for foreign exchange remittance outside of China.
As part of the transaction, the Company's Chinese subsidiaries, Xinjiang Yakesi Resources Co. Ltd. and Hami Jubao Resources Co. Ltd., have recently paid GobiMin a final dividend amounting to approximately CAD$6 million and also repaid shareholder loans of approximately CAD$2.9 million. Both amounts have been remitted into the Company's bank accounts outside of China.
Following the receipt of the proceeds of the sale of its assets, GobiMin holds approximately CAD$115 million in cash and cash equivalents (CAD$1.63 per share) and has no debt.
GobiMin holds its 40% interest in the Yanxi Copper Deposit in Hami, Xinjiang for which the Company has received a NI 43-101 compliant Mineral Resource Estimate from Scott Wilson RPA in October 2008. GobiMin has four other joint ventures on base metal projects in Xinjiang. GobiMin is 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