Golden China and BacTech Agree to Amend Exclusive
Licensing Agreement for Proprietary
BACOX� Technology Use
Toronto, Ontario, June 19, 2007 - Golden China Resources Corporation (GCX: TSX; ASX) today announced that it has reached an agreement to amend the existing technology licensing agreement for the use of the proprietary bacterial oxidation (BACOX�) technology employed by the company's BioGold production facility in Shandong province, China. An amended agreement to be entered into between subsidiaries of BacTech Mining Corporation (BM: TSX.V), owners of the BACOX� technology, and Golden China will extend Golden China's exclusive rights to the use of the BACOX� technology in China and Korea from the current ten years to an open-ended term in perpetuity (subject to certain rights of termination) and will enable Golden China to sublicense the technology in these regions. As well, the amended agreement will remove BacTech's entitlement to any future royalties and eliminate its right to acquire a 5% to 15% equity interest in any future BA
COX� operations built by Golden China in the regions to be covered under the agreement.
"The new licensing agreement will benefit us in several respects and represents an important corporate development for Golden China," said Greg Starr, President and Chief Executive Officer of Golden China. "In addition to ensuring our rights to the BACOX� technology indefinitely and allowing us to sublicense it, the amended contract will eliminate any royalty fees that would otherwise be associated with the upcoming expansion of the bacterial oxidation plant at our BioGold production facility. Further, it will remove BacTech's right under the original agreement with Michelago to acquire a 5% to 15% interest in any bacterial oxidation plants built by Golden China in the relevant territories."
In consideration for the amendments, Golden China will issue, subject to required regulatory, shareholder and third party approvals, 847,458 common shares to BacTech.
The previous agreement entitled Golden China to exclusive use of the BACOX� technology in China, Korea, Siberia and Mongolia; however, under the terms of the new agreement, the company will agree to relinquish the rights to the regions of Siberia and Mongolia.
Anticipated for completion by the end of 2007, the expansion of the company's bacterial oxidation plant at BioGold will enable Golden China to process the significantly expanded volumes secured under its new long-term agreement with Hellas Gold as announced in a Golden China press release of February 7, 2007. The expansion, which will double treatment capacity from a current 100 tonnes per day (TPD) to 200 TPD, is expected to significantly enhance the BioGold facility's cash flow from 2008 onward.
About Golden China Resources Corporation:
Golden China Resources Corporation is a significant participant and consolidator in the Chinese precious metal industry and one of the largest producers of gold in China. The company is using its extensive knowledge of the Chinese marketplace and best practices based on established international standards in building a diversified gold business focused on exploration and development, operations, and corporate development in the Chinese precious metal industry. Golden China's shares are listed on the main boards of both the Toronto and Australian Stock Exchanges under the symbol GCX.
For further information please contact:
Golden China Resources Corp.
Kristen Humphrey
Communications Manager
Tel: 416.366.8818 ext. 230
khumphrey@goldenchina.ca
www.goldenchina.ca
or
Renmark Financial Communications Inc.
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Julien Ouimet : jouimet@renmarkfinancial.com
Tel. : 514.939.3989
Fax: 514.939.3717
www.renmarkfinancial.com
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic
filings with Canadian securities regulatory authorities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
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