TORONTO, April 15, 2005 (PRIMEZONE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) today announced the signing of a Definitive Agreement with Sino Silver Corp. ("Sino Silver") (OTCBB:SSLV) whereby Silver Dragon has acquired 50% of Sino Silver's interest in the net proceeds from the sale of minerals or the sale of mining rights as a result of the exploration, evaluation and development of the Aobaotugounao property located in the Erbaohuo Silver District in Northern China.
The transaction requires a payment of US$350,000 over a two year period, US$150,000 of which was paid today along with 250,000 shares of restricted common stock, plus an additional 250,000 shares to be delivered to Sino Silver in one year. In addition, the transaction gives Silver Dragon the option of acquiring 50% of Sino Silver's interest in the net proceeds from the sale of minerals or the sale of mining rights in another property within the region within 30 days.
"The Erbaohuo Silver District is an historic silver reserve with 3 producing silver mines. We are encouraged by the existing technical data we reviewed on our property as part of our due diligence. We look forward to assisting Sino Silver with a detailed development plan and expect to initiate a work program this month. In addition, we will be considering the additional property which we have the right to acquire as per the terms of the Agreement," said Marc Hazout, President and CEO.
Silver Dragon is a mining and metal company focused on acquiring and developing a portfolio of silver properties in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly-leveraged, out-of-the-money silver deposits and former producing properties with significant untapped exploration potential.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.