BEIJING, April 19, 2011 /PRNewswire-Asia-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou", or the "Company") (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in China, today announced that its audited financial statements in the Company's Form 10-K for the fiscal year ended December 31, 2010 filed on March 29, 2011, received a going concern qualification from Sherb & Co. LLC, the Company's independent registered public accounting firm.
This announcement is required by NYSE Amex's rules and does not represent any change or amendment to the Company's financial statements or to its Form 10-K for the fiscal year ended December 31, 2010.
Subsequent to the 2010 year end, on January 24, 2011, the Company announced the completion of a registered direct offering to several institutional investors for approximately $20 million of common stock. Institutional investors were issued approximately 2.8 million common shares together with warrants to purchase up to 851,066 shares of common stock which, if fully exercised for cash, would provide an additional $7.2 million in gross proceeds to the Company. China Shen Zhou believes working capital raised in January 2011 is sufficient to maintain operations throughout 2011. Further, the Company reported in an 8-K filing in April 2011 that it entered into an equity transfer agreement for its 60% equity ownership interest in Wulatehouqi Qingshan Nonferrous Metal Development Co., Ltd. ("Qingshan Metal"), a company with an inactive mine, for a price of RMB 8.5 million. Upon completion, this equity transfer agreement will partially offset the Company's debts owed to the purchaser, and reduce the Company's liabilities.
About China Shen Zhou Mining & Resources, Inc.
China Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a) fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia; and (c) zinc/copper exploration, mining and processing in Xinjiang. For more information, please visit http://www.chinaszmg.com.
Safe Harbor Statement
Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in the People's Republic of China, variations in cash flow, fluctuation in mineral prices, risks associated with exploration and mining operations, and the potential of securing additional mineral resources, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
SOURCE China Shen Zhou Mining & Resources, Inc.