Taung Gold International Limited (HKG:0621) announced that it agreed to sell the entire issued share capital of Longold Win Limited and the sale loan, for an aggregate consideration of HK$96 million which will be satisfied as to HK$10 million in cash and HK$86 million by way of issue of the promissory notes.

Longold Win owns the Long Men Sou Mining Licence. The Long Men Sou Mine is currently with a mining area of approximately 0.3611 sq. km. and the estimated total gold resources of Long Men Sou Mine are 1.39 million tons of ore and 7,400 kilogram of gold metal.

The Company estimated that the expected net gain from the disposal will not be more than HK$0.5 million.

The Company considered that the disposal represents a good opportunity for the Group to realise its investment in the gold mine related business in the PRC and to strengthen the financial position. It is the intention and development plan of the Group to allocate its resource for the development of gold mine related business in South Africa and sales of minerals.