January 16 -- Zhong Zhu Holding (600568.SH), a company operating in the pharmaceutical and property sectors, signed an agreement with Zhejiang Zhongdian Equipment to jointly develop a rare earth mine in Wuzhou, Guanxi province, reports 163.com, citing a company filing.

Zhejiang Zhongdian Equipment has a 39 percent stake in Guangxi Wuzhou Rare Earth, and is its second-largest shareholder.

Guangxi Wuzhou Rare Earth, founded in 2009 with a registered capital of 50 million yuan, is a major developer of rare earth mines in Wuzhou.

According to the agreement, Zhong Zhu Holding will acquire a 40 percent stake in Zhongdian Equipment for up to 62.74 million yuan.

In addition, both parties will set up Guangxi Wuzhou New Material Technology to develop rare earth metals, with Zhong Zhu Holding having a 60 percent stake.

The two parties will also set up a minerals trading company, and the details will be discussed later.