SAC Cement buys China gold mine at HK$1b

SAC Cement buys China gold mine at HK$1b
19 September 2007

Shanghai Allied Cement Limited (1060) said its wholly-owned Sino Able Investments Limited agreed to purchase the entire issued share capital of Redstone Gold Limited at HK$1 billion.

HK$150 million will be paid as refundable deposit, while HK$850 million will be settled by the issue of 530 million consideration shares of HK$1 apiece and by HK$320 million cash payment.

The company also agreed to make available to Redstone a loan facility of HK$50 million to be used solely as working capital.

The company agreed to place 600 million new shares to independent investors at HK$1 apiece.
The HK$582 million net proceeds will principally be applied as the above cash payment, the repayment of the borrowings for payment of the refundable deposit and and the loan facility to Redstone.
Redstone’s principal business activity is investment holding. Its sole asset is its equity interests in the subsidiary which principal business activity is gold mining in PRC.
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