1 Oct 2010 07:00
China Goldmines plc ("CGM" or the "Company")
EXPIRY OF WARRANTIES
On 27 August 2009 CGM announced the disposal by its wholly owned subsidiary, Global Resource Ventures Limited ("GRV"), of Westralian Resources Pty. Ltd. to Cosmos Castle Management Limited ("Cosmos") (the "Transaction"). The Transaction was approved at the General Meeting of the Company held on 21 September 2009 and the disposal was completed on 29 September 2009.
Under the terms of the Transaction CGM guaranteed, as principal obligor, in favour of Cosmos and its assigns or successors, the due and punctual performance and observance by GRV of its obligations, agreements, warranties and undertakings under the Share Purchase Agreement and the other documents relating to the Transaction and indemnified Cosmos and its assigns or successors against all losses, damages, costs and expenses arising from any breach by GRV of its obligations, agreements, warranties and undertakings. Additionally, CGM provided warranties to Cosmos and agreed to indemnify Cosmos, its officers, directors, affiliates, stockholders, shareholders, successors and assigns. CGM's liability in relation to this guarantee, the indemnities and the warranties was limited to the sum of USD10,000,000 in aggregate.
CGM is pleased to announce that the period during which claims could be brought in respect of the guarantee, the warranties and the indemnities expired on 29 September 2009, without any antecedent breaches being claimed by Cosmos.
CGM has existing funds of approximately US$22 million (approximately £13.9m or 28p per share).
As announced on 30 September 2010 the Company's shares have been suspended from trading on AIM.
Enquiries:
| China Goldmines | |
| Robert Adair | Tel: +44 1845-537037
|
| Marinko Vidovich | Tel: +61 8 6216 5200 |
|
Brewin Dolphin (Nomad) |
|
| Alexander Dewar
| Tel: +44 131 529 0276
|