August 24 -- Nanchang Changli Iron & Steel  announced that it will sell a 30-percent stake in Zijin Tianou Mine Industry to Zijin Baoshan Iron Smelting for 256 million yuan, reports Shanghai Securities News, citing a company filing.

Zijin Tianou Mine Industry was founded in March 2004, with registered capital of 150 million yuan. It is involved in mineral resource exploration and procurement. Baoshan Iron Smelting will hold 100-percent stakes in Zijin Tianou Mine Industry after acquiring a 30-percent stake from the listed company.

Zijin Tianou Mine Industry has a mining license of the Xiagao iron mine, with areas of 2.1 square kilometers, with reserves of 27.93 million tons of iron ore worth 556.84 million yuan, according to the assessment report.

According to the appraisal report, Zijin Tianou Mine Industry had total assets of 1.056 billion yuan, with net assets of 840 million yuan as of June 30 2011, so its 30-percent stake is worth 252 million yuan.

Changli Steel spent 25.5 million yuan to acquire a 30-percent stake in Zijin Tianou Mine Industry in June, 2007, and it injected capital of 21 million yuan in Zijin Tianou Mine Industry in 2008. Changli Steel will be able to receive investment income of around 200 million yuan from selling the 30-percent stake in Zijin Tianou Mine Industry.

Source:capitalvue