HUIZHOU, China, May 26 /PRNewswire-Asia-FirstCall/ -- Qiao Xing
Universal Resources, Inc. (Nasdaq: XING) ("the Company" or "XING"),
an emerging Chinese resources company headquartered in Huizhou, Guangdong
Province, today announced that its wholly-owned subsidiary
Chifeng Zhongtai Mining Co., Ltd. ("Chifeng Zhongtai") has signed a
letter of intent with Chifeng Xingu Mining Co., Ltd. ("Chifeng
Xingu"), a non-affiliated third party, to acquire the 100% equity
interest in Balinzuo Banner Xinyuan Mining Co., Ltd. ("Xinyuan
Mining" or the "Mining Company") for a purchase price not to exceed
US$ 107 million (RMB 730 million) in cash to be paid in several
installments.
As a wholly-owned subsidiary of Chifeng Xingu, Xinyuan Mining
owns a relatively large-scale lead-zinc mine in Balinzuo Banner, in
the Inner Mongolia Autonomous Region of the People's Republic of China (the "Xinyuan
Lead-zinc Mine" or the "Mine").
Based on the preliminary due diligence and domestic geological
exploration materials, Xinyuan Mining owns the mining license of
the Xinyuan Lead-zinc Mine, covering 3.3233 square kilometers. The
reserves of lead-zinc metal and copper metal, which are subject to
verification, are estimated to be 825,000 tons and 109,000 tons,
respectively, with average grade at 7.60% for lead-zinc and 1.01%
for copper. The Mine has current production capacity for processing
500 tons of ores per day, and is now at the stage of trial
operation. The final products of the Mine are lead-zinc concentrate
and copper concentrate being supplied to smelters in Chifeng and
surrounding areas in China. In
addition to its well-developed infrastructure, including water and
power supplies as well as transportation, Xinyuan Mining has
obtained all relevant permits for normal business operation.
Xinyuan Mining also boasts an experienced technical and management
team with years of mining expertise.
Based on preliminary discussions, Chifeng Zhongtai plans to
acquire the Mining Company for cash, with final terms of the
acquisition subject to due diligence. The Company plans to engage
one of the world's top-class mining consulting firms to verify the
reserves of the Mine. In addition, the completion of the
acquisition is also subject to, among other conditions, the
following conditions: negotiation of a equity purchase agreement
satisfactory to both parties; approval by the Board of Directors of
Qiao Xing Universal Resources, Inc.; satisfactory completion of all
due diligence efforts and investigations by the Company and Chifeng
Zhongtai; receipt of all necessary regulatory and governmental
approvals; verification of the reserve and grade information
regarding the Mine; receipt of appropriate legal opinions; and
other customary closing conditions. There can be no assurance that
a definitive equity purchase agreement will be completed or
executed or that the sale of Xinyuan Mining will be completed.
"China's strategically
important resources, copper, lead and zinc, are widely used in the
automobile, construction and machinery industries. In the medium
and long term, we are optimistic about a solid recovery in the
global economy and the continuous growth of the Chinese economy and
therefore believe that these resources will meet growing demand for
many years," commented Mr. Wu Ruilin, Chairman of XING. "With
commodity prices at relatively low levels for now, we are trying to
capture this market opportunity to buy some large scale and high
quality mines to rapidly grow our business scale. The Xinyuan
Lead-zinc Mine is an intriguing asset for us because of its
potential large scale, high grade, and benefits from good mining
conditions. Once the acquisition is closed, the Mine is expected to
enhance the Company's foothold in China's resources industry, and create
shareholder value as well."
"At the same time, we are actively discussing with some advisory
firms how to sort out our relationship with Qiao Xing Mobile
Communications Co., Ltd. (NYSE: QXM) and how to deal with its
mobile phone business. Currently, we are evaluating several options
and are trying our best to make the final decision as soon as
possible."
About Qiao Xing Universal Resources, Inc.
Qiao Xing Universal Resources, Inc. is an emerging Chinese
resources company headquartered in Huizhou, Guangdong
Province, China. The
Company was previously one of the leading players of
telecommunication terminal products in China, but made the strategic decision to
diversify into the resources industry in 2007. In April 2009, the Company acquired the 100% equity
interest in China Luxuriance Jade
Company, Ltd ("CLJC"). CLJC, through its wholly owned Chinese
subsidiaries, owns the rights to receive the expected residual
returns from Chifeng Haozhou Mining Co., Ltd. ("Haozhou Mining"), a
large copper-molybdenum poly-metallic mining company in Inner
Mongolia, China. Since then, the
Company has further refined its strategy to become a pure resources
company and is actively seeking additional acquisition targets in
the resources industry.
Safe Harbor Statement
This announcement contains forward-looking statements, as
defined in the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, these
forward-looking statements can be identified by words or phrases
such as "aim," "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "is /are likely to," "may," "plan,"
"potential," "will" or other similar expressions. Statements that
are not historical facts, including statements about Qiao Xing
Universal Resources, Inc.'s beliefs and expectations, are
forward-looking statements. Forward- looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement. Information regarding these factors is
included in our filings with the Securities and Exchange
Commission. Qiao Xing Universal Resources, Inc. does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law. All information provided in this
press release is as of May 26,
2010.
For more information, please contact:
Company Contact:
Mr. Rick Xiao, Vice President
Email: rick@qiaoxing.com
Tel: +86-752-282-0268
CCG Investor Relations Contact:
Mr. Ed Job, Account Manager
Email: ed.job@ccgir.com
Tel: +1-646-213-1914 (NY office)
SOURCE Qiao Xing Universal Resources, Inc.