Chaoyue Group (HKG:0147) announced that its 90%-owned subsidiary, Eagle Mountain Holdings Limited, has agreed to sell 70% of the issued share capital of each of Acme Day Limited and Fastmind Investments Limited for US$21 million (HK$163.4 million). A gain of HK$56.5 million is expected to arise from the disposal, Chaoyue Group said.

The net proceeds from the disposal are estimated to be HK$153.1 million. Chaoyue Group intends to apply such net proceeds as to HK$50 million as general working capital and as to HK$103.1 million to fund this project and future acquisitions for business expansion.

Fastmind and Acme hold 99% and 1% interest in Tun Lin Limited Liability Company respectively. Tun Lin is a company organized under the laws of the Kyrgyz Republic, and holds 100% interest in Kichi-Chaarat Closed Joint-Stock Company, which is the holder of the exploration license and mining license for the Kuru-Tegerek Gold mine located at Chatkal region of Jala-Abad Province, Southwest of Kyrgyz Republic.

The mine has an estimated mineral resources of 97 tonnes of gold and 1 million tonnes of copper. The exploration license and mining license had been issued by the relevant authorities of Kyrgyzstan's Government with an exploration period to 31 December 2014 and a mining period to 31 December 2021 respectively. The mining work is yet to commence but Chaoyue Group has engaged professional parties to conduct a feasibility study and such study is still in the progress. No revenue had been generated from the mine up to 6 January 2012.