BEIJING, Nov. 09, 2012 /PRNewswire-FirstCall/ --
China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE
Amex: SHZ), a company engaged in the exploration, development,
mining and processing of fluorite, barite, zinc, copper, and other
nonferrous metals in China, today
announced that the Company has successfully entered into agreements
with a group of institutional investors to redeem, and fulfill its
dividend obligations with respect to 1,332 shares of Convertible
Preferred Stock using $398,519.46 in
cash, $391,764.48 of which will be
used to redeem the Convertible Preferred Stock.
On March 26, 2012, the Company
completed an offering of Series A Convertible Preferred Stock for
gross proceeds of $5.0
million. The Company issued 5,000 shares of Series A
Convertible Preferred Stock and warrants to purchase 1,960,785
shares of common stock of the Company at $2.05. The proceeds were used for the
completion of the acquisition of several fluorite mines and
processing plants as well as necessary infrastructure upgrades.
Per the terms of the Series A Convertible Preferred Stock, the
Preferred Stock's conversion price is subject to adjustment
according to market price. The Company believes that the redemption
with cash will disable the conversion of these shares of Preferred
Stock to common stock and reduce dilution to other common stock
shareholders.
Despite the current economic climate adversely affecting many
resource companies in China whose
important customers are steel and aluminum producers, the Company
is making its best efforts to grow business, optimize cash flow and
improve shareholder value.
Regarding the prior announcement of the Company from November 7th, the Company remains confident that
it can provide the NYSE MKT LLC (the "Exchange") with a
satisfactory plan by November 30, and
regain its compliance within the timeframe set forth by the
Exchange.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its
subsidiaries, is engaged in the exploration, development, mining,
and processing of fluorite, barite and nonferrous metals such as
zinc, lead and copper in China.
The Company has the following principal areas of interest in
China: (a) fluorite extraction and
processing in the Sumochaganaobao region of Inner Mongolia;
(b)fluorite and barite extraction and processing in the Wuchuan
County of Guizhou province
(c)fluorite and barite extraction and processing in the Yanhe
County of Guizhou province.(d)fluorite extraction and processing in
Jingde County, Anhui Province; (e) zinc/copper/lead processing in
Wulatehouqi of Inner Mongolia; and (f) zinc/copper exploration,
mining and processing in Xinjiang. For more information, please
visit http://www.chinaszmg.com/.
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking
statements. Forward-looking statements can be identified by the use
of forward-looking terminology such as "will", "believes",
"expects" or similar expressions. These forward-looking statements
may also include statements about our proposed discussions related
to our business or growth strategy, which is subject to change.
Such information is based upon expectations of our management that
were reasonable when made but may prove to be incorrect. All of
such assumptions are inherently subject to uncertainties and
contingencies beyond our control and upon assumptions with respect
to future business decisions, which are subject to change. We do
not undertake to update the forward-looking statements contained in
this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the
forward-looking statements contained in this press release, see our
most recent Annual Report filed with the Securities and Exchange
Commission (SEC) on Form 10-K, and our subsequent SEC filings.
Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at
http://www.sec.gov.
Contact Information
Min
Liu
Investor Relations
Grayling
Tel:
+1-646-284-9413
min.liu@grayling.com
Shiwei Yin
Grayling
Tel:
+1-646-284-9474
shiwei.yin@grayling.com
SOURCE China Shen Zhou Mining & Resources, Inc.