China Kings Resources plans to acquire 80% of shares of Ningguo Mining

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Publish time:12/3/2019 12:00:00 AM      Source: CCM
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On November 13, 2019, China Kings Resources announced that the company signed an “Intent to Transfer Agreement” with two transferors, Zhanfu Feng and Hengsong Pan, for the transfer of Ningguo Mining Ltd. to the ownership of China Kings Resources. King Resources plans to acquire 80% of all equity earnings of Ningguo Mining along with all associated debts and plans to pay a total of no more than RMB 104 million for the purchase. China Kings Resources agreed to pay all taxes associated with the transfer of equity earnings.


Ningguo Mining Ltd. runs various operations, including the extraction, processing, acquisition and sales of calcium fluoride, sales of mining equipment, and the acquisition, processing, and selling of calcium fluoride powder.


Ningguo Mining Ltd. owns extraction rights for a calcium fluoride mine located in Zhuangcun, Ningguo City. The rights of Ningguo Mining Ltd. are clearly defined, and Ningguo Mining Ltd. has no limits in its right to mortgage, close down, or temporarily suspend the mine, nor does it face any limits in its right to pursue lawsuits related to the mine. Ningguo Mining Ltd. extracts approximately five tons of calcium fluoride per year and has a supply of approximately 1.16 million tons of calcium fluoride on hand. The deal between China Kings Resources and Ningguo Mining Ltd. does not include the Kengwu mountain mine belonging to Ningguo Mining Ltd.; the extraction rights to this mine will be given to a third party.


The company will focus on investing in and developing the calcium fluoride mine and will aim to make calcium fluoride a strategic resource in the development of China’s economy.


China Kings Resources to become leader in calcium fluoride market

If the current deal proceeds as planned, China Kings Resources will acquire 80% of the equity earnings of Ningguo Mining Ltd., and Ningguo Mining Ltd. will become a subsidiary company of China Kings Resources. At the same time, China Kings Resources will be able to increase its resource supply and resource quality, and resource distribution will improve, and China Kings Resources hopes to become a leading enterprise in the calcium fluoride market.


China Kings Resources is a commercial conglomerate that specializes in the extraction, development, and sale of calcium fluoride and is currently the leader of calcium fluoride supply, extraction, production, and processing in China. It is also the only listed company in the Chinese market to participate in both the calcium fluoride industry and nonmetallic mining industry. This purchase of China Kings Resources is the first step of a strategic plan to stabilize the company’s operations by reinforcing the company’s calcium fluoride supply.


Calcium fluoride found in Asia, North America, Europe, and southern Africa

Calcium fluoride is distributed all throughout the world, and currently 40 countries have discovered the presence of industrially viable calcium fluoride ore. In 2017, it is estimated that approximately 500 million tons of calcium fluoride ore had already been extracted, with about 270 million tons of ore being economically viable for extraction.


Across the world, calcium fluoride resources are mostly distributed throughout Asia, primarily in China and Mongolia, as well as in Mexico, the United States, South Africa, Kenya, Spain, and the United Kingdom. Among these countries, China and South Africa currently own the largest supplies of calcium fluoride. With approximately 4.1 billion tons of calcium fluoride economically viable for extraction, China currently owns about 15% of the entire world’s supply of calcium fluoride.


For more information on China’s fluoride market, please check our China Fluoride Materials Monthly Report.