Huakan International
Mining Inc. Appoints New CEO and VP Acquisitions
and Extends Closing
Date of Sale of Greenwood Gold Project Assets
Vancouver, British Columbia.� Huakan
International Mining Inc. (TSX-V: HK) (the �Company�) is pleased to announce the appointments of Mr. Kunpeng Li as President and CEO and Mr. Wenhong
(Wilson) Jin as Vice President Acquisitions, effective immediately.� Mr. Deli Tian, who
has been acting President and CEO, will remain as a director and Chairman of
the Board.��
Mr. Li, who joined the Company as Vice President of Business Development
in April 2011, has worked in various overseas management
and engineering capacities for the Tianjin Huakan
Group since 1999.� He brings his
experience in mining project management, markets, and international trade to
the Company.
Mr. Jin joined the Company as Chief Geologist in November 2010.� He has 18 years experience
in field exploration for precious and base metals. Prior to joining the Huakan Group, he worked for Sino Gold and the Northwest
Non-Ferrous Metal Bureau.
In an unrelated matter, the Company reports that the deadline for closing of the
sale of its Greenwood Gold project assets to Gold Crown LLC has been extended
to September 2, 2011, subject to Gold Crown making an additional deposit of
$500,000 on or before August 26, 2011 toward the purchase price.� In exchange for granting Gold Crown the
extension, Gold Crown has agreed to pay the Company an additional $300,000 on
closing as an extension payment in addition to the $275,000 extension payment
announced on August 5, 2011.� If the sale
does not close by September 2, 2011, Gold Crown has agreed to forfeit a total
of $1,250,000 that will have been delivered to the Company as a deposit.
Under the terms of the asset purchase agreement,
the Company has agreed to sell a 100% interest in its Greenwood Gold Project,
located near Greenwood, British Columbia, to Gold Crown in consideration for
$5,000,000 and a 2% net smelter returns royalty (subject to reduction to 1% if
the price of gold drops below US$1,050) on any ore milled at the Greenwood
mill, up to a maximum of $9,000,000 over a ten year period.� Gold Crown has agreed to make annual minimum
net smelter royalty payments of $500,000 and will make a lump sum payment at
the end of the ten year period, if necessary, to bring the total net smelter
royalty payments to $9,000,000.