GobiMin Inc. Announces Proposed Listing of Silver Operation in Hong Kong

TSX-V: GMN

TORONTO, April 23, 2014 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") is pleased to announce that the Company's 48.02% owned associate, China Precision Material Limited ("CPM"), has kicked off its plan to apply for listing on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited ("HKEx") by way of placing. CPM is principally engaged in metal trading, predominately silver and operates a small processing workshop.

In order to have the silver operation listed publicly, the capital structure of CPM will be reorganised. All the shares held by the existing shareholders of CPM will be swapped for the shares in a newly incorporated Hong Kong company ("New HK Listco").

As at March 31, 2014, an amount of approximately USD5.6 million is due to GobiMin Silver Limited ("GobiMin Silver") by CPM. In order to partially settle such loan, New HK Listco will issue shares to GobiMin Silver credited as fully paid-up by capitalisation of a loan amount of approximately USD3.57 million. The remaining loan balance will be settled by cash upon listing.

Concurrently with its listing, New HK Listco will complete an offering of 120 million shares.

Therefore, the market capitalisation of New HK Listco upon listing will be approximately USD18.53 million. The equity interest of GobiMin, through GobiMin Silver, in New HK Listco will remain approximately 48.02% with a market value of approximately USD8.88 million.

Furthermore, each of GobiMin Inc., GobiMin Investments Limited, GobiMin Silver and Mr. Felipe Tan agreed to give a non-competition undertaking in favour of New HK Listco. It is also expected that all the New HK Listco shares to be held by GobiMin Silver will be subject to a twelve (12) months non-disposal undertaking.

Subject to the successful listing, New HK Listco will be the listed holding company of CPM and its subsidiaries.

The application for listing and details of the transaction are subject to approval of the HKEx. We shall keep updating the progress of the application and provide details on the transactions once finalised.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management of GobiMin. The readers are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. The readers should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and GobiMin assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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SOURCE GobiMin Inc.