Wanguo International Mining : Gold Ridge Mine to recommence production soon

Company News

On 16 July 2017, the Company entered into a share sales and purchases agreement ('S&P Agreement') with AXF Resources Pty Ltd ('AXF Resources') pursuant to which the Company has conditionally agreed to acquire, and AXF Resources has conditionally agreed to dispose of, 611 shares out of 1,000 shares in AXF Gold Ridge Pty Ltd ('AXF Gold Ridge') (representing 61.1% equity interest of AXF Gold Ridge) in consideration of AUD58.35 million. Pursuant to the terms of the S&P Agreement, the Company has agreed an estimated maximum commitment of AUD50 million for the Reconstruction Works and the administrative and maintenance costs. Hence, the total amount of commitment by the Company for the aforesaid acquisition is AUD108.35 million. Please refer to the Company's announcement dated 17 July 2017 for details.

This investment will see mine production on track to start within a short period of time. In an unprecedented partnership arrangement, Gold Ridge Comminity Investment Ltd (GCIL), which comprise the local land owners, owns 10% of Gold Ridge Mining Limited. AXF Gold Ridge holds the balance of 90%. The Company effectively owns 55% attributable interest and takes the control of the Gold Ridge Mine.

Additional capital and technical expertise from the Company strengthens AXF Gold Ridge.

New capital will help the Gold Ridge Mine Project reach its full potential. Wanguo International Mining Group led by Mr Mingqing Gao, Our Chairman has provided technical expertise to the Gold Ridge Mine Project for the last year. The strength of the partnership between landowners and AXF Resources, combined with the support from the government, has given them the confidence to commit as an investor to this project.

Gold Ridge Mine's principal landowners and community leaders confirmed their continued full support and commitment to the project during consultation. Landowners agreed that by working together, the recommissioned Gold Ridge Mine would achieve new heights (Yu mi tugeda bae mekem Gold Ridge mine waka gud).

Richard Gu, Managing Director of the AXF Group and Director of AXF Gold Ridge Pty Limited, said, 'I feel humbled and proud that the project has reached this stage. I look forward to a long and fruitful development partnership with Gold Ridge Mine landowners, our investor, and the people and government of the Solomon Islands'.

Senior executives from AXF Gold Ridge including Chairman-elect Mr Mingqing Gao, Richard Gu, and Dr Shaun Ren visited the Solomon Islands this week to celebrate the milestone with landowners and government officials. At a meeting with the Solomon Islands Prime Minister the Hon. Manasseh Sogavare, Chairman-elect Mr Gao reinforced, 'The reopening of the Gold Ridge Mine will send a strong message to the investment community that the Solomon Islands is open for responsible and transparent mining business'.

In the coming months, the site will undergo a complete refurbishment with infrastructure upgrades to improve site access and the construction of a new power station. An independent review of the tailings storage facility will be commissioned to minimise risk to local communities. Community relations activities will ramp up with one of the priorities the establishment of socially inclusive engagement mechanisms with landowners and local communities.

Caption: Gold Ridge Mine landowners (mining lease, tailings storage facility and downstream) pictured with representatives from AXF Gold Ridge and GCIL.

Caption: The Solomon Islands Prime Minister the Hon. Manasseh Sogavare (centre) confirms his support for the Gold Ridge Mine Project to senior executives from AXF Gold Ridge including (from left to right) Dr Shaun Ren, Mr Martin Zhang, Mr Richard Gu, Chairman-elect Mr Mingqing Gao, Mr Rob Rafaniello, Mr Allen Wang and Ms Gao Jinzhu.

About Wanguo International

Wanguo Internaional Miing Group Limited is principally engaged in the business of mining, ore processing and sale of cncentrates products in the PRC and its core products are copper concentrates and iron concentrates. The Group currently, through its wholly-owned subsidiaries, owns the entire equity interest in Yifeng Wanguo, which in turn owns the Xinzhuang Mine. The Xinzhuang Mine, managed by Yifeng Wanguo, is principally engaged in the business of mining , ore processing and sale of copper, iron, zinc and lead, while the production system of the Xinzhuang Mine is divided into mining system and processing system. The shares of Wanguo International are listed on the main board of The Stock Exchange of Hong Kong Limited since 10 July 2012 (stock code: 03939.HK).