BEIJING, Dec. 23, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) announces that it has terminated the previously announced definitive agreement to sell its 70% equity interest in the Erbahuo polymetallic project in China and its 70% ownership in the Chinese subsidiary, Chifeng Silver Dragon Resources & Technologies, Ltd., to a private Chinese investor. Silver Dragon will pursue and implement an alternative strategic plan.
Under the original signed definitive agreement the Chinese investor committed to pay Silver Dragon a deposit of RMB 1.8 million, or ~US$260,000 within three business days after signing the definitive agreement, with the balance of RMB 4.2 million, or ~US$622,000 due upon Chinese Ministry of Commerce approval.
Silver Dragon will not sell the Erbahuo silver mine and will instead implement an alternative strategic plan which includes a 2010 listing on a major Canadian stock exchange.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. (OTCBB:SDRG) is a mining company focused on the acquisition, exploration, development, and operation of silver mines in proven silver districts in China and Mexico. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets and/or producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing Cerro las Minitas in Mexico and the nine Erbahuo properties in China. With operations in Mexico, the world's leading silver producer, and China, the largest silver consumer, Silver Dragon is prepared to participate in China's increasing demand for silver. For more information, please visit the Company's website at: http://www.silverdragonresources.com (now available in Chinese).
The Silver Dragon Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4242
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained herein which are not historical, such as statements regarding the exploration and development of the Erbahuo Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results as well as production expectations are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information inferred from the interpretation of assay results and information concerning mineralization zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements 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 future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.