WMC and the Mongolian Connection

Welli-Multi Corporation (WMC) furnished additional information to Bursa on its potential first international foray into Mongolia. In the Heads of Agreement between the China Government of Inner Mongolia, Chi Feng Economic and Trade Committee and WMC, both the former parties will co-operate and assist WMC with incentives to invest in the areas of metals, coal mining, power, new town development as well as to take a substantial stake the government's listed company Chi Feng Dadi Basic Industry Co. Ltd. ("Chi Feng").

As trawling the WWW can hardly turn out anything on Chi Feng, the response to the Bursa has provided some useful background information.

Chi Feng was incorporated in 1994 and is listed on the Shenzen Stock Exchange since 1996 with a paid up capital is RMB346 million.It is involved in businesses relating to natural resources (coal mining, metal smelting, power generation) and infrastructures (tollroads, property development) principally in Inner Mongolia.

WMC informed that the final percentage of the stake to be acquired will be finalized when WMC subsequently enters into a definitive Sales and Purchase Agreement ( S&P).

WMC believes that it would be able to leverage on the goodwill of its partnership with the China Government of Inner Mongolia to expand into areas of infrastructure (power generation, tollroads) and natural resources (mining, smelting). Through this partnership, WMC will be in the best position to secure concessions and projects in the areas of infrastructure and natural resources.The proposed acquisition, to be purchased through loans, is expected to contribute positively to WMC's earnings upon its completion.WMC expects the deal to be completed in 90 days from the date of the signing of the S&P.

WMC reiterated its core businesses will remain unchanged but the new businesses are expected to expand the Company's revenue which will contribute strongly to the profitability of the Company.

Heartsong