Blackgold International Holdings Limited announced that it had entered into a Share Transfer Agreement to acquire a 100% interest in Qijiang Changhong Coal Industry Co Ltd which is the holder of the mining rights to the QiJiang ChangHong Coal Mine situated in Qijiang County Chongqing, People Republic of China for consideration of CNY 98 million.

The acquisition was conditional upon the Company obtaining a new business license from the Qijiang Industry & Commerce Administration Bureau.

Blackgold announced that it has received the required new business license from the Qijiang Industry & Commerce Administration Bureau and as such has completed the above mentioned acquisition.

The QiJiang ChangHong Coal Mine is located within 50 kilometers of the company existing office in Chongqing. The Mine is located in the area bordering Xishui County of Guizhou and Qijiang County of Chongqing. The mine contains 2 existing adits together with ventilation and access shafts and ancillary infrastructure including power, piped water, access roads and buildings.

The QiJiang ChangHong Coal Mine has been the subject of extensive local exploration and development in the past. However, pursuant to the ASX Listing Rules and ASX guidance, the results of these previous geological evaluations have not been disclosed in this announcement as they were undertaken under the geological standards and practices of the PRC and not in accordance with the Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves “JORC Code”.

The company has commissioned Al Maynard & Associates Pty Ltd as independent and duly qualified geologists to undertake the geological exploration and evaluation works required in order to convert existing PRC geological data into JORC defined resources at QiJiang ChangHong Mine.