TORONTO, April 4, 2005 (PRIMEZONE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) today announced the signing of a Letter of Intent with Sino Silver Corp. ("Sino Silver") (OTCBB:SSLV) relating to the acquisition of 50% of Sino Silver's interest in the net proceeds from the sale of minerals or the sale of mining rights as a result of the exploration, evaluation and development of a property located in the Erbaohuo Silver District in Northern China. Sino Silver owns 60% of the equity in a Chinese company, Sino-Top Resources & Technology, Ltd., which holds the exploration and mining rights to several properties, including the one that is the subject of the Letter of Intent.
The acquisition is subject to a number of conditions including, but not limited to, the delivery by Sino Silver of all geological and technical data related to the property, and the execution of a definitive agreement. The transaction requires a payment of US$350,000 over a two year period, US$150,000 of which is in escrow to be delivered to Sino Silver along with 250,000 shares of restricted common stock upon the signing of the agreement and another 250,000 shares to be delivered to Sino Silver one year later.
"Silver Dragon's joint venture with Sino Silver is a major step in our intention to build a diversified, highly leveraged portfolio of silver mining interests in China. Sino Silver has strong relationships with key partners in China, and has secured mining interests in a historic silver district that we can now participate in. China's appetite for silver, combined with the potential for rising silver prices, make this an exciting opportunity for Silver Dragon and our shareholders. Our immediate objective is to finalize the acquisition and then focus on assisting Sino Silver's development plans for the property," said Marc Hazout, President and CEO.
Silver Dragon is a mining and metal company focused on acquiring and developing a portfolio of silver properties in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly-leveraged, out-of-the-money silver deposits and former producing properties with significant untapped exploration potential.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.