August 16 -- Shanghai Dingli Technology Development (Group) (600614), a company involved in the healthcare, rubber and real estate sectors, intends to acquire a 51 percent stake in Jinhuhao Mining for 20 million yuan, reports National Business Daily, citing a company filing.

Jinhuhao Mining reported a loss of 1.52 million yuan in the first half of 2011. Sales revenue totaled 3.41 million yuan in the same period.

Jinhuhao Mining currently owns the exploration rights to a gold mine in Jingxi county, Guangxi province. The exploration rights will expire on March 24, 2012.

The gold mine covers an area of 0.14 square kilometers, with proven reserves of 982,542.55 tons of gold ore.

The company estimates annual investment income of 13.18 million yuan, with the rate of return on this investment hitting 43.95 percent. The estimated investment payback period is 2.28 years.

Dingli Technology previously spent 40 million yuan to acquire a 10 percent stake in Cengxi Rare Earth from Zhejiang CNEEC Equipment.

The company had announced on June 16 that it will spend 178 million yuan to acquire a 51 percent stake in Xinbao Mining. The plan was later cancelled as the seller could not complete all the procedures on time.

Dingli Technology received compensation of 35.6 million yuan from the seller.

Source:CapitalVue