Santo Mining Corp (SANP)

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NEWS OUT...Cathay (SANP) Announces Definitive Agreement to Acquire Tabacalera Café Fuerte

Ft. Lauderdale, FL -- January 5, 2015 -- InvestorsHub NewsWire -- Santo Mining Corporation also known as Cathay Lifestyle Group Inc., (OTCPINK:SANP), (the "Company"), signed a definitive deal to acquire 50% of Tabacalera Café Fuerte SRL in the Dominican Republic in an all-stock transaction deal. Under the terms of the transaction, Cathay will purchase Tabacalera Café Fuerte 50% stake for 200 million shares of Preferred “C” Class Stock of SANP. Upon completion of the acquisition Cathay will have a foothold in the pre-industry tobacco processing industry in the Dominican Republic to export bulk cured high-grade tobacco to China. The transaction is expected to close by the end of the first quarter of fiscal 2016.

Cathay’s CEO, Franjose Yglesias, commented, “With today’s announcement, we have taken another step in Cathay’s long term growth strategy, which we believe will create increased value for its stakeholders. This transaction will provide Cathay access to participate in the $1.2 billion dollar import Chinese tobacco market for 2016.” Additionally Mr. Yglesias stated “I am excited to announce that Mr. Matthew Arnett will spearhead the export operation of Tabacalera Café Fuerte and I welcome Mr. Juan Carlos Tineo Castro as the new Chief Master Tobacco Blender for Cathay Cigars of Asia Corp. and VP of Tabacalera Café Fuerte.”

Strategic Rationale for Transaction

1.Entry into Chinese high-grade bulk tobacco import market
2.Manufacturing of private label cigars for the Chinese market
3.Margin expansion and growth value to the company
4.Foothold in one of the best tobacco regions in the world

Terms of the Agreement

Under the terms of the agreement, Cathay will acquire 50% of Tabacalera Café Fuerte for 200 million shares of Preferred “C” Class Stock of SANP, (subject to certain adjustments). Cathay expects to get a revolving line of credit and is currently in negotiations with some financial institutions. The line of credit will be used for tobacco futures purchase and the development of the private label brand for the Chinese market.

http://ih.advfn.com/p.php?pid=nmona&article=69890925