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8-K - CHINA SHEN ZHOU MINING & RESOURCES, INC. | v208298_8k.htm |
EX-10.1 - CHINA SHEN ZHOU MINING & RESOURCES, INC. | v208298_ex10-1.htm |
EX-4.1 - CHINA SHEN ZHOU MINING & RESOURCES, INC. | v208298_ex4-1.htm |
EXHIBIT
99.1
China
Shen Zhou Mining & Resources Announces Registered Direct Placement of
Approximately $20 Million of Common Stock and Warrants
BEIJING, CHINA, Jan. 19, 2011
/PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc.
("China Shen Zhou" or the "Company”) (NYSE AMEX: SHZ), a company engaged
in the exploration, development, mining and processing of fluorite, zinc, lead,
copper, and other nonferrous metals in China, today announced that it has
entered into a securities purchase agreement with several institutional
investors for a registered direct placement of approximately $20 million of
common stock at a price of $7.05 per share. The Company will issue a total of
2,836,883 shares to these institutional investors. In addition, the Company will
issue warrants to the institutional investors to purchase up to 851,066 shares
of common stock, which, if fully exercised for cash, would provide an additional
$7.2 million in gross proceeds to the Company. The three-year warrants have an
exercise price of $8.46 per share and are exercisable immediately following the
closing date.
The
securities were offered and sold pursuant to the Company's effective shelf
registration statement and a prospectus supplement filed with the Securities and
Exchange Commission.
The net
proceeds from this offering will be used for general corporate purposes and
working capital, including general and administrative expenses, and potential
ordinary course acquisitions that complement our business. In addition, the
Company will use approximately $5 million of the net proceeds from this offering
for the acquisition and renovation of the mining facilities of the Xinyi
Fluorite Company, Ltd.
The
completion of the placement will occur on or before January 21,
2011.
FT Global
Capital, Inc. acted as the exclusive placement agent in connection with the
offering.
The
securities in this offering are being issued under a shelf registration
statement (File No. 333-171243), which was declared effective by the Securities
and Exchange Commission on January 7, 2011. A prospectus supplement related to
the public offering will be filed with the Securities and Exchange Commission.
Copies of the final prospectus supplement and accompanying prospectus relating
to the offering may be obtained from FT Global Capital, Inc. by request at
dpitt@ftglobalcap.com or by calling (770) 350-2698. An electronic copy of such
prospectus is also available on the web site of the Securities and Exchange
Commission (the "SEC") at http://www.sec.gov .
About
China Shen Zhou Mining & Resources, Inc.
China
Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in
the exploration, development, mining, and processing of fluorite and nonferrous
metals such as zinc, lead and copper in China. The Company has the following
principal areas of interest in China: (a) fluorite extraction and processing in
the Sumochaganaobao region of Inner Mongolia; (b)zinc/copper/lead exploration,
mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper
exploration, mining and processing in Xinjiang.
For more
information, please visit http://www.chinaszmg.com/
Safe
Harbor Statement
Certain
of the statements made in the press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of forward-looking
terminology such as "believe," "expect," "may," "will," "should," "project,"
"plan," "seek," "intend," or "anticipate" or the negative thereof or comparable
terminology. Such statements typically involve risks and uncertainties and may
include financial projections or information regarding our future plans,
objectives or performance. Actual results could differ materially from the
expectations reflected in such forward-looking statements as a result of a
variety of factors, including the risks associated with the effect of changing
economic conditions in the People's Republic of China, variations in cash flow,
fluctuation in mineral prices, risks associated with exploration and mining
operations, and the potential of securing additional mineral resources, and
other risk factors detailed in reports filed with the Securities and Exchange
Commission from time to time.
For more
information, please contact:
Kevin
Theiss/Min Liu
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Investor
Relations
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Grayling
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Tel:
+1-646-284-9409
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kevin.theiss@grayling.com
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min.liu@grayling.com
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