2013-01-22 21:08:57 -
TORONTO, ONTARIO -- (Marketwire) -- 01/22/13 -- Arehada Mining Limited ("Arehada" or the "Company") (TSX VENTURE:AHD.H) is pleased to announce that it has received confirmation from local taxation authority of the tax rate applicable to the proceeds of the sale by Arehada's wholly-owned subsidiary, Arehada (Barbados) Corporation, of all of the shares it held in Arehada's Chinese operating company, to Shanjin Mining Corporation ("Shanjin"), a Shandong based Chinese mining company, pursuant to an agreement dated February 11, 2010. The applicable tax rate will be 10%. Arehada is now making a submission to the local tax authority with respect to the amount of the taxable assets, which is expected to be approximately RMB 802 million.
Once Arehada's submission is accepted, Arehada will have received the required approval from the tax authority for its tax return, and the amount of the tax payable will have been determined. At that point, Shanjin will withhold the taxes payable from the balance of the sale proceeds and remit the taxes to the tax authorities. The Company will then be required to apply for a Tax Certificate for Sale and Payment of Foreign Exchange and obtain approval from SAFE (State Authority for Foreign Exchange) for payment of the net sale proceeds.
The Company intends to call a special meeting of shareholders as soon as practicable following the approval of the tax return to ratify the sale.
Forward Looking Information
The above contains forward looking information that is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Generally, forward looking information can be identified by the use of forward looking terminology such as "plans", "expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward looking information in this press release relates to the management's expectation of the approval of the tax return filed by Shanjin, expected amount of taxable assets, payment of the taxes payable, the application for SAFE approval, the anticipated calling of shareholders' meeting and anticipated businesses to be approved at the shareholders' meeting. Although we believe the expectations reflected in our forward looking information are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Readers should not place undue reliance on forward looking information.
Arehada Mining Limited
Betty Si-Ge Wang
Arehada Mining Limited
Chief Financial Officer