CVM Minerals (00705.HK)has entered into a non-legally binding memorandum of understanding for the acquisition of 51% interest in a target company that is principally engaged in the business of manufacturing and distributing bottled natural mineral water in the PRC.

The operating subsidiary of the target company in the PRC has well established its factory for manufacturing bottled natural mineral water and is holding relevant valid mining licence/approval for natural mineral water, CVM Minerals says. Furthermore, the subsidiary has established relevant sales distribution channels in the PRC.