TORONTO, May 17, 2005 (PRIMEZONE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) today announced that it has advised Sino Silver Corp. ("Sino Silver") (OTCBB:SSLV) of its intent to acquire an equity interest in a second property located in the Erbaohuo Silver District in Northern China.
Sino Silver owns 60% of the equity in a Chinese company, Sino-Top Resources & Technologies, Ltd., which holds the exploration and mining rights to several properties in the Erbaohuo Silver District. Silver Dragon recently completed a deal with Sino Silver on one of these properties, the Aobaotugonao Silver Project, and is now exercising their rights included in the original agreement to acquire an interest in a second property in the area.
The transaction requires a total payment of US$350,000 over a two year period, US$150,000 of which is due upon the closing along with 150,000 shares of restricted common stock, and another 150,000 shares to be delivered to Sino Silver over the 2-year period. The acquisition is still subject to due diligence and the setting of a closing date.
"We are very pleased with the relationship we have built with Sino Silver and look forward to working more closely with them in the near future. We are excited about the potential of our first property, the Aobaotugonao Silver Project, on which a comprehensive work program has commenced. We expect to have exploration results to announce over the course of the summer, and feel that now is an opportune time to add to our interests in the resource-rich Erbaohuo Silver District," 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.