HONG KONG, Dec 31, 2007 (XFN-ASIA via COMTEX) -- CSHYY | charts | news | PowerRating -- China Strategic Holdings Ltd said its wholly-owned subsidiary Joinway Group Corp has entered into a memorandum of understanding to buy mining assets from Gainpro Group Ltd for not less than 320 mln yuan.
Under the agreement, China Strategic will acquire 100 pct of Xiwuzhumuqinqi Jinzheng Mining Co Ltd, which owns a coal mine in the Inner Mongolia region of China.
The mine, which covers an area of 38.4065 square kilometers, has a proven reserve of 750 mln tons of power coal, and has been granted a production permit of 1.20 mln tons of coal per annum.
Xiwuzhumuqinqi is applying for a production permit to extract not less than 3.0 mln tons of coal from the mine per annum.
China Strategic said the agreement is not legally binding and is subject to several conditions, including the acquisition of Xiwuzhumuqinqi by Gainpro Group from Zhong Run New Century (Beijing) Investment Co Ltd.
Shares of China Strategic today closed up 0.12 hkd or 15.0 pct at 0.92 hkd.
( 1 usd = 7.30 yuan, 7.80 hkd)