Prosperity Minerals to buy 25% stake in Liaoning Changqing

Byyyp

Updated Wed, 26 May 2010 00:00:00 GMT

Prosperity Minerals Holdings Ltd announced that it has signed a stake transfer agreement with Liaoning Yan Zhou Zhu Xin Cement Co. on May 24th.

Pursuant to the agreement, Prosperity Minerals agreed conditionally to buy a 25% stake in Liaoning Changqing Cement Co for RMB 100 million.

Liaoning Changqing Cement was founded in 2007, in which Prosperity Minerals had a 55% stake while Liaoning Yan Zhou Zhu Xing Cement had the remaining 45%.

In March, 2009, Prosperity Minerals and Liaoning Yan Zhou Zhu Xing Cement signed a revised joint-venture agreement, raising Prosperity Minerals' holdings in the JV to 75%.

In April 30, Prosperity Minerals' 75% stake in Liaoning Changqing was transferred to TCC International Holdings Ltd<1136> after Prosperity Minerals sold its cement business to TCC International.

Liaoning Changqing recently has completed the construction of a cement production line with an annual production capacity of 2 million tons. The production line is expected to start operation in September this year upon the completion of its trial production.