Yue Da Mining (HKG:0629) announced that it has agreed to terminate the acquisition of 22% equity interests in Tong Ling Guan Hua Mining Development Company Limited (target). Pursuant to the termination agreement, the parties to the agreement agreed to release and discharge all obligations of the parties to the agreement as provided under the agreement.

As the price of gold has been fluctuating to a relatively large extent recently, the board of Yue Da Mining considers that additional investment in gold may further expose Yue Da Mining to the risk of possessing an extra amount of volatile assets and is therefore not in the interest of Yue Da Mining and its shareholders as a whole to pursue the acquisition of the 22% equity interests in the target at this stage based on the existing terms of the agreement. The board of Yue Da Mining considers that the termination of the agreement is in the interest of Yue Da Mining and its shareholders as a whole and has no material adverse impact on the existing business and/or the financial position of Yue Da Mining.

Yue Da Mining announced last September that it agreed to acquire an aggregate of 22% equity interests in the target, a company principally engaged in mining, processing and sale of gold in the PRC at a consideration of RMB100 million. Upon completion of the acquisition, the target will be owned indirectly as to 92% by Yue Da Mining.

Source:chinesestock.org