December 8 -- Zhong Zhu Holding (600568.SH), a company operating in the pharmaceutical and property sectors, plans to acquire a 68 percent stake in Rongling Jieyao Mining for 128 million yuan, reports China Securities Journal, citing a company filing.

The target company has copper and gold mine exploration and mining rights issued by the Department of Land and Resources in Guangxi province.

The mining rights were assessed to be worth a total of 203 million yuan, according to the report.
According to the agreement, should there be a minimum of 23 tons of gold reserves at the mine, and average gold grade of not less than 1.6 grams, the sale price of the 68 percent stake will be set at 128 million yuan.

In the event that the requirements are not met, both parties will set the price based on the actual amount of gold reserves and the actual average gold grade.

The mine will be put into operation once the acquisition and all other necessary procedures are completed.

Shares of Zhong Zhu Holding fell 5.99 percent to trade at 23.70 yuan per share at 11:29 today.

Source:CapitalVue