TORONTO, ON / ACCESSWIRE / November 3, 2015 / Silver Dragon Resources Inc. (SDRG) (the "Company") reports that it has signed a Memorandum of Understanding with Shengda Mining Co., Ltd. (SZSE:000603) ("Shengda") to receive an all cash consideration for the Company's 20% equity interest in China, Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top").
Under the Memorandum of Understanding, Shengda agreed to advance RMB5 Million (approximately USD$780,000) to the Company for certain costs involved with the transaction and general corporate purposes in two payments. The first payment of RMB2.5 Million (approximately USD$390,000) has been received. The second payment of RMB2.5 Million (approximately USD$390,000) will be made upon receipt of the third party valuation expected this month.
Upon receipt of the third party valuation, the Company's Board will review and if the transaction is approved by the Board, the Board shall seek approval of the matter at the Company's Annual Meeting of Stockholders, the date of which is to be determined. The consummation of the sale of the Company's 20% interest in Sino-Top which is all of its interest in Sino-Top is subject to determination of the sales price of Sino-Top, execution of final transaction documents, obtaining any required approvals including the approval of the Company's shareholders and the approval of appropriate regulatory authority including the China Securities Regulatory Commission.