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Silver Dragon Resources - News Release
October 5, 2009
Silver Dragon Signs Definitive Agreement to Sell Erbahuo Mine in China BEIJING, Monday October 5, 2009 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce that it has entered into a definitive agreement to sell its Erbahuo polymetallic project in China along with its Chinese subsidiary, Chifeng Silver Dragon Resources & Technologies, Ltd., to a private Chinese investor for RMB 6 million or ~US$ 882,000 to the Company. Proceeds from the sale of Erbahuo will be used for further exploration and development of Silver Dragon's other properties in China, including Dadi and Laopandao, of which Silver Dragon has a 40% interest and of its 100% owned Cerros las Minitas silver property in Durango, Mexico. Under the terms of the agreement, Silver Dragon will receive (i) a payment of RMB1.8 million or ~US$260,000 within three business days; (ii) funds from the return of the mine safety deposit in the amount of RMB 303,695 or ~US$44,661; (iii) funds from the return of the geologic environment governance deposit in the amount of RMB 553,135 or ~US$ 81,348; and (iv) 70% of the cash balance and value of equipment and vehicles in Chifeng Silver Dragon, which result in total proceeds of ~US$1 million net to the Company. "I am pleased that we have been able to monetize our Erbahuo mine, which is the smallest of our properties, so that we can focus on our prime assets in China and Mexico," commented Marc Hazout, President and CEO of Silver Dragon Resources Inc. "We are currently accelerating our exploration programs at our Dadi and Laopandao properties, which we intend to develop into producing assets." Read Full Article
About Silver Dragon Resources Inc. Silver Dragon Resources Inc. (OTC: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 Cerros las Minitas in Mexico and the nine Erbahuo properties in China. With operations in Mexico, the world's leading producer of silver, and in China, the world's largest consumer of silver, Silver Dragon is prepared to participate in China's increasing demand for silver. Thank you for your interest in Silver Dragon Resources Inc.
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Investor Relations Silver Dragon Resources Inc.
Silver Dragon Resources Inc. | 5160 Yonge Street | Suite 803 | Toronto | Ontario | M2N 6L9 | Canada
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Silver Dragon is based in Canada.
Silver Dragon holds various exploration projects in China.
Its main asset in production is ERBAHUO in China and its main exploration properties are CERRO LAS MINITAS in Mexico and LAOPANDAO BEIHOU, DADI, LIANGDI, SAIHANAOBAO, AOBAOTUGOUNAO, YUANLINZI, SHIDIDONGGOU and ZHUANXINHU in China.