In a press release, Silver Dragon Resources Inc. (OTCBB: SDRG) announced the termination of its previously announced definitive agreement to sell its 70% equity interest in the Erbahuo polymetallic project in China and its 70% ownership in the Chinese subsidiary, Chifeng Silver Dragon Resources & Technologies, Ltd. In lieu of selling the mine, Silver Dragon will implement an alternative strategic plan which includes a 2010 listing on a major Canadian stock exchange.
Under the original signed definitive agreement the Chinese investor committed to pay Silver Dragon a deposit of RMB 1.8 million, or ~US$260,000 within three business days after signing the definitive agreement, with the balance of RMB 4.2 million, or ~US$622,000 due upon Chinese Ministry of Commerce approval.
