CA - Minco Silver agrees to acquire a stake in Sichuan Hexie Shuangma cement company

• Minco Silver ( OTCQX:MISVF ) to acquire a stake in Sichuan Hexie Shuangma, one of the largest cement manufacturing companies in China and the owner of several limestone mines.
• Per the terms, the company, through its wholly owned subsidiary, Minco Mining (China) Co., Ltd. will acquire an interest in the Tianjin Saikehuan Enterprise Management Center Limited Partnership from Tianjin Huaxin Anneng Management Consulting Partnership LP for RMB 119.76M (CAD$23.04 million) in cash.
• The Saikehuan LPs primary asset is an ~25% stake in Hexie (a total of 190.98M shares). The company's stake in the Saikehuan LP gives it an indirect interest in ~7.48M shares of Hexie or 0.98% of Hexie's total outstanding shares.
• The purchase price was funded exclusively from Minco Silver's surplus working capital, and represents an opportunity to earn a greater return than through traditional banking investments.
• The preliminary pact was negotiated between the company and Huaxin on an arms-length basis.
• In conjunction with the proposed deal, Minco China has also entered into a restructuring and distribution pact with Saikehuan LP and its general partner.
• Per the terms of this restructuring pact, the company will be entitled to recoup its entire purchase price from the proceeds of any sale of Hexie shares.
• Once the purchase price has been recouped in full, all remaining proceeds will be divided as to 20% to the general partner, with the remaining 80% distributed to Minco China.

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