Jinhui Mining to acquire 49% stake in Haosen Mining

To integrate lead and zinc resources in Jiangluo mining district, Jinhui Mining Co., Ltd. announced that it plans to acquire a 49% stake in Haosen Mining Co., Ltd. held by Gansu Yate Investment Group Co., Ltd. for RMB270 million (USD37 million) in cash, and at the same time, provide a loan of around RMB209 million (USD28.6 million) to Haosen Mining to repay a loan from Yate Investment. On the date when the exploration right owned by Hausen Mining is upgraded into mining right, Jinhui Mining may consider the loan to Haosen Mining as an capital increase. Upon completion, Jinhui Mining will hold a 55% stake in Haosen Mining. 

Haosen Mining, along with Xiangyang Mining and Xiejiagou Lead and Zinc Mining are the major three owners of mining claims in Jiangluo mining district. As of now, the other two companies are wholly-owned by Jinhui Mining. Haosen Mining owns two lead and zinc exploration rights in Jiangluo mining district.