On July 15, 2008, China Natural Resources Inc., a company incorporated in BVI and based in China, announced that, on July 11, 2008 it entered into an agreement with Feishang Group Limited.
Feishang Group Limited is a related party, from which China Natural Resources agreed to acquire, firstly, all of the issued and outstanding capital stock of Pineboom Investments Limited and its wholly-owned subsidiaries or Coal Group, and, secondly, the outstanding indebtedness owing by the Coal Group to Feishang Group on the closing date.
The purchase price for the shares (all the stock) and indebtedness is USD 25 million, which is subject to adjustment. The details on the transaction were included into the Company's Current Report with the Securities and Exchange Commission on July 15, 2008. The closing date of the deal is expected in the 1st quarter of 2009.
The CEO and Chairman of a British Virgin Islands corporation commented that the acquisition is consistent with the company's strategy to expand coal and metal reserves, and that China Natural Resources is optimistic about the prospect of the coal mining industry in China as economic growth is continuing there.
