Shenghe Resources to transfer 51% stakes in four Companies including Leshan Shenghe

Shenghe Resources announced on October 18 that it plans to enter into an equity cooperation with China Rare Earth Industrial Development to transfer a 51% stake in the divested Leshan Shenghe, as well as 51% stakes in Quannan New Resources, Jiangyin Jiahua and Zibo Jiahua--all held by its controlled subsidiary Chenguang Rare Earth--to China Rare Earth Development.Asian Metal Copyright Upon signing and implementation of the equity transfer cooperation agreement, Leshan Shenghe new, Quannan New Resources, Jiangyin Jiahua and Zibo Jiahua will no longer be consolidated into the company's financial statements.Asian Metal Copyright The final transfer price is expected to range from RMB1.Asian Metal Copyright6575 billion USD248.Asian Metal Copyright6575 billion (USD248.Asian Metal Copyright90 million.Asian Metal Copyright01 million) to RMB1.Asian Metal Copyright70 million in guarantees for Leshan Shenghe.Asian Metal Copyright8105 billion (USD270.Asian Metal Copyright The final transfer price is expected to range from RMB1.Asian Metal Copyright90 million).

As of the announcement date, the company has provided RMB800 million (USD119.70 million) in guarantees for Leshan Shenghe.Asian Metal Copyright6575 billion USD248.Asian Metal Copyright Upon signing and implementation of the equity transfer cooperation agreement, Leshan Shenghe (new), Quannan New Resources, Jiangyin Jiahua and Zibo Jiahua will no longer be consolidated into the company's financial statements.Asian Metal Copyright6575 billion USD248.Asian Metal Copyright The company will account for the target companies using the equity method based on its post-transaction shareholding ratio and recognize investment income accordingly.

.Asian Metal Copyright90 millionAsian Metal Copyright