Linggang gets approval to purchase iron ore mine from parent

May 25, 2008

May 25 (Steel Guru) – Linggang Stock announced that the program of Linggang Group to transfer Baoguo iron ore stake to Linggang Stock and the result of assets evaluation have gained approval form the National Assets Department.

As per report Lingyuan Steel Group can transfer its 100% stock rights of Baoguo iron ore mine to Linggang Stock by the way of directional increasing its shares and cash transfer. The estimated net assets were valuing at CNY 2.018 billion and the value increasing rate was 340.26%.

Linggang Stock recently disclosed the additional issue plan after the adjustment, the company plans to non publicly issue no more than 193,9 million shares and at least 64.63 million shares to specific targets the base price is CNY 8.51 per share, the fund raising is not expected to exceed CNY 1.5 billion.

Linggang Stock plans to use this method to purchase 40% stock right of Lingyuan Steel Group’s Baoguo iron ore mine, at the same time, to increase investment of CNY 296 million to Baoguo iron ore mine. The goal of the company is to own a long term and stable iron ore concentrate supply base.

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