TORONTO, ONTARIO--(Marketwired - April 29, 2014) - Arehada Mining Limited ("Arehada" or the "Company") (TSX VENTURE:AHD.H) is pleased to announce that it has received approval of the State Administration of Foreign Exchange of China ("SAFE") with respect to the sale by Arehada's wholly-owned subsidiary, Arehada (Barbados) Corporation ("Arehada Barbados"), of all of the shares it held in Arehada's Chinese operating company, to Shanjin Mining Corporation ("Shanjin"), a Shandong based Chinese mining company, pursuant to an agreement dated February 11, 2010. The SAFE approval is the last regulatory approval required to release the sale proceeds to the Company from the bank account jointly controlled by the Company and Shanjin.
After deduction of RMB 74.82 million in tax payment made by Shanjin on behalf of the Company but before payment of other liabilities of the Company, a total of approximately RMB 621.77 million, will be released to the Company from Shanjin. The funds to be received by the Company will be held in the Company's newly acquired subsidiary Yunnan Xuming Tiancheng Tourism Development Co. Ltd. ("Tiancheng") of which the Company holds, through Arehada Barbados, a 92.98% equity interest by investing RMB 225 million in registered capital and a debt investment of RMB 396.77 million.
The Company plans to call an annual and special meeting of shareholders to be held on or about June 27, 2014 (the "Meeting") to approve, among other things, the voluntary dissolution of the Company. If the voluntary dissolution is approved by the shareholders, and subject to receipt of all required regulatory approvals, the Company will liquidate all of its assets, including its holdings in Tiancheng, satisfy all of its liabilities, distribute all remaining assets to its shareholders, and dissolve the Company.
Forward Looking Information
The above contains forward looking information that is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Generally, forward looking information can be identified by the use of forward looking terminology such as "plans", "expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward looking information in this press release relates to the management's expectation on receipt of sales proceeds from the jointly controlled bank account and on placing the funds in Tiancheng, management's plan on calling a shareholders' meeting, the expected date of the meeting and anticipated businesses to be approved at the shareholders' meeting, management's expectation of receiving shareholders' approval for the dissolution, management's expectation on receipt of regulatory approvals for the dissolution, and management's expectation on liquidation of the assets, satisfaction of all liabilities, distribution of remaining assets to shareholders and completion of the dissolution. Although we believe the expectations reflected in our forward looking information are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Readers should not place undue reliance on forward looking information.