Silver Dragon Resources Inc. is a metals and mining company focused on acquiring silver mining assets around the globe that have promising exploration targets, highly-leveraged out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. Currently the company has silver mines in both Mexico and China.
The company announced today that it has entered into a definitive agreement to sell its Erbahuo polymetallic project in China along with its Chinese subsidiary, Chifeng Silver Dragon Resources & Technologies Ltd., to a private Chinese investor for about $882,000. In addition, the company will receive funds from the value of the equipment of their Chinese subsidiary as well as the return of deposits made to meet various mine safety and environmental laws for the mine that is being sold. The total of the funds received by Silver Dragon will be about $1 million.
Proceeds from the sale of Erbahuo will be used for further exploration and development of Silver Dragon’s other properties in China, including Dadi and Laopandao, of which Silver Dragon has a 40% interest and of its 100% owned Cerros las Minitas silver property in Durango, Mexico.
President and CEO of Silver Dragon Resources, Marc Hazout, commented on the sale of the Erbahuo mine. He said, “I am pleased that we have been able to monetize our Erbahuo mine, which is the smallest of our properties, so that we can focus on our prime assets in China and Mexico. We are currently accelerating our exploration programs at our Dadi and Laopandao properties, which we intend to develop into producing assets.”