Huakan
International Mining Inc. Announces Sale of Greenwood Gold Project Assets
March 29, 2011 � Vancouver, British
Columbia. Huakan International
Mining Inc. (TSX-V: HK) (the �Company�) announced today that it has entered
into an asset purchase agreement (the �Agreement�) with Gold Crown LLC (the
�Purchaser�), an arm�s length company, pursuant to which the Company will
sell 100% of its interest in the Greenwood Gold Project located near
Greenwood, British Columbia to the Purchaser, in consideration for
C$5,000,000 and a 2% net smelter returns royalty (subject to reduction to 1%
if the price of gold drops below US$1,050) on any ore milled at the Greenwood
mill, up to a maximum of $9,000,000 over a! 10 year period. The Greenwood
Gold Project is comprised of the 200 tonne per day
(tpd) Greenwood mill, and the Lexington-Grenoble,
Golden Crown, and Lone Star gold/copper properties. The Purchaser has also
agreed to make minimum net smelter royalty payments of $500,000 per year, and
to make a lump sum payment at the end of the 10 year period, if necessary, to
bring the total net smelter royalty payments made to $9,000,000. The proposed
transaction (the �Proposed Transaction�) is scheduled to close on or around
May 25, 2011.
Deli
Tian, acting President and CEO, states �All of the
stakeholders in the Greenwood Gold Project, including local and regional
businesses, communities, and governments, and First Nations will benefit from
Gold Crown�s intended re-opening of operations this year.�
The
sale of the Greenwood Gold Project assets will enable the Huakan
to focus its resources on continuing to advance its 100% owned J&L polymetallic (gold/silver/lead/zinc) project located near
Revelstoke, BC.
The
completion of the Proposed Transaction is conditional upon, among other
things, approval by the Company�s shareholders, which will be sought at the
Company�s annual and special meeting of shareholders to be held on or around
May 12, 2011, and approval by the TSX Venture Exchange.
For
further information please contact:
Jeffrey
Ren, Chief Financial Officer at (604) 694-2344
Neither the TSX Venture Exchange nor its Regulations
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accept responsibility for the adequacy or
accuracy of this release.
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STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain
of the statements made and information contained herein may contain
forward-looking statements or forward-looking information within the meaning
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Forward-looking
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which could cause actual events or results to differ from those reflected in
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risks and uncertainties relating to: completion of announced transactions,
history of losses; requirements for additional capital; dilution; loss of its
material properties; interest rates increase; global economy; limited history
of production; speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure of
processing and mining equipment; labour disputes;
supply problems; commodity price fluctuations; uncertainty of production and
cost estimates; the interpretation of dri! ll results and the estimation of mineral resources and
reserves; legal and regulatory proceedings and community actions; title
matters; regulatory restrictions; permitting and licensing; volatility of the
market price of common shares; insurance; competition; hedging activities;
currency fluctuations; and loss of key employees. Should one or more of
these risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described in
forward-looking statements or information. Accordingly, readers are advised
not to place undue reliance on forward-looking statements or information. The
Company disclaims any intent or obligation to update forward-looking
statements or information except as required by law, and you are referred to
the full discussion of the Company�s business contained in the Company�s
reports filed with the securities regulatory authorities in Canada.
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