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Sino Gold (ASX: SGX) and Golden China Resources (ASX: GCX); Take-Over Bid Circular
Sydney, Oct 25, 2007 (ABN Newswire) - Sino Gold Mining Limited (together with its subsidiaries, "Sino Gold") (ASX: SGX, SEHK: 1862) and Golden China Resources Corporation ("Golden China") (TSX/ ASX: GCX) announced the mailing today of the Sino Gold take-over bid circular and the Golden China directors' circular in connection with the previously announced Offer of Sino Gold for all of the outstanding Golden China common shares. Under the Offer, Golden China shareholders will receive 0.2222 of a Sino Gold share for every Golden China common share they hold. The Offer implies a value for each Golden China share of C$1.55 (A$1.80) based on the closing price of Sino Gold shares on ASX of A$8.11 on 19 October 2007 (the "Implied Offer Price"). The Implied Offer Price represents a premium of 83% to the closing price of Golden China shares on the TSX of C$0.85 (A$0.95) on 10 August 2007, the last trading date prior to announcement of the Offer. This Offer will be open for acceptance until 11:59 p.m. (Vancouver, Canada time) on November 29, 2007 / 6:59 p.m. (Sydney, Australia time) on November 30, 2007. Full details of the Offer, including the conditions thereto, are contained in the Sino Gold take-over bid circular which, together with the Golden China directors' circular, have been mailed to Golden China securityholders and have also been filed on Sedar at http://www.sedar.com
About Sino Gold Limited
Sino Gold has been active in China since 1996 and owns 82% of the Jinfeng gold mine in Guizhou Province, southern China, which has Mineral Resources containing 4.6 million ounces and Ore Reserves containing 3.2 million ounces. Jinfeng will be one of the largest gold mines in China when the project achieves planned initial production of 180,000 ounces per annum. Sino Gold aims to increase Jinfeng's gold production to optimal levels as quickly as possible.
The White Mountain project in Jilin Province, northeast China, is now being developed into Sino Gold's second mine.
In December 2007, Sino Gold completed the takeover of Golden China Resources Corporation and announced the Eastern Dragon acquisition. Sino Gold now has projects that provide a clear pathway for the Company to produce 500,000 ounces of low-cost gold annually by 2010.
Sino Gold is a producing gold company actively pursuing a discovery and acquisition strategy in China. With a "first mover" advantage, it holds a strong competitive position in China.
Sino Gold is listed on the Australian Securities Exchange (ASX Code: SGX) and the Stock Exchange of Hong Kong (SEHK Code: 1862).
About GOLDEN CHINA RESOURCES CORPORATION
Golden China Resources Corporation (GCX: TSX; ASX) is a Toronto based mining company focused on China's dynamic precious metals industry. In the short time since our inception in 2004, and has produced substantial growth through the acquisition and development of assets. Golden China is now one of the largest gold producers in China.
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