Prosperity Minerals Holdings Ltd Update on proposed disposal (3968M)

TIDMPMHL

RNS Number : 3968M

Prosperity Minerals Holdings Ltd

23 August 2013

Prosperity Minerals Holdings Limited

("Prosperity" or "the Company")

Update on proposed disposal of Prosperity's 16.11% equity interest in TCC Liaoning Cement Company Limited

Prosperity Minerals Holdings Limited (PMHL.L), an iron ore trader/operator and real estate owner/developer in the People's Republic of China (PRC), today announces an update on the proposed disposal of its entire 16.11% equity interest in TCC Liaoning Cement Company Limited (TCC Liaoning) to TCC International Holdings Limited (TCC International).

Further to the Company's announcement on 6 February 2013, Prosperity is pleased to announce that all the necessary approvals have been obtained and the Disposal was completed on 22 August 2013. As per the sales and purchase agreement, RMB 115.6 million (approximately US$ 18.7 million), representing 80 per cent of the total consideration, has been paid to Prosperity and RMB 21.7 million (approximately US$ 3.5 million) (or 15 per cent) will be paid to the Company within 5 working days following completion. The balance of RMB 7.2 million (or 5 per cent) will be retained by TCC International as provision for PRC capital gains tax for one year after completion. The Disposal represents a profit before tax of RMB 44.5 million (approximately US$7.2 million).

Unless otherwise specified, the capitalised terms used in this announcement have the same meaning as those defined in the announcement dated 6 February 2013.

Enquiries:

   Prosperity Minerals Holdings Limited                                      +852 3187 2618

Patrick Li

Neelke Kruger-Logan

Citigate Dewe Rogerson +44 (0) 20 7638 9571

Martin Jackson

Priscilla Garcia

   Daniel Stewart & Company plc                                                +44 (0) 20 7776 6550

Corporate Finance: Paul Shackleton, Antony Legge,

Emma Earl

Corporate Broking: Martin Lampshire

Notes to Editors:

Prosperity (AIM: PMHL) is:

- an iron ore trader and operator serving the PRC;

- a specialised real estate owner and developer in the same market; and

- an investor in a listed cement company, also in the PRC.

Prosperity's iron ore trading business has been operating since 1992 and sources iron ore, for shipment and use in the PRC, from major international iron ore producers in South Africa, Brazil, Australia and South East Asia, Thailand and Malaysia in particular. The majority of the Company's iron ore is sold to large steel manufacturers in the PRC. In the fiscal years ended 31 March 2012 and 2013, Prosperity shipped 4.8 million tonnes and 2.8 million tonnes of iron ore respectively.

In December 2010, Prosperity acquired a 35% effective interest in United Goalink Limited (UGL), a Brazilian mining operation which owns approximately 600 square kilometres of exploration rights and 3 square kilometres of mining concession in the State of Ceará in the north east of the country. In the year ended 31 March 2013, UGL shipped 111,490 tonnes of iron ore (which is included in the above tally).

Prosperity's real estate investment and development division is focused on creating an attractive portfolio of PRC property and development assets. The Company has entered into a number of agreements with partners to develop residential, commercial and recreational projects principally in Guangzhou City and Changzhou City in the southern PRC. Prosperity also owns an interest in an existing commercial building in Guangzhou, which is a regional capital and is located in the Pearl River Delta, the foremost economic zone in the southern PRC.

Prosperity holds a 33.06% interest in Anhui Chaodong Cement Company Limited (ACC), a cement manufacturer located in Anhui Province in the eastern PRC. The designed sellable production capacity of ACC is 6 million tonnes of cement and clinker per annum. ACC is listed on the Shanghai Stock Exchange (600318).

The PRC is the World's second largest economy (behind the US) and the biggest buyer of iron ore; it is also the largest producer and consumer of cement.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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