Southern Rare Earth Company boasts a registered capitalof 300 million yuan

Tag : Non-ferrous Metal

NFC (China Non-ferrous Metal Industry'sForeign Engineering and Construction Co., Ltd) said recently it had received an approval from the NationalDevelopment and Reform Commission for the relocation of itssubsidiary Guangdong Zhujiang Rare Earth Co., Ltd. and theestablishment of a new firm with a designed capacity of 7,000 tonstogether with other corporations.

The planned Southern Rare Earth Company boasts a registered capitalof 300 million yuan with a total investment estimated at 472.

51 million yuan and fixed assets investment of 334.41million yuan.

Under an agreement, NFC will capture a 76 percent stake in theplanned NFC Southern Rare Earth Company with an investment of 228million yuan, including no less than 150 million yuanself-collectedcash.

GeoQuin Nano Rare Earth Co., Ltd. and Changshu Shengchang RareEarth Smelting Company will provide 30 million yuan worth ofintangible assets respectively to gain 10 percent shares each.

Xinfeng Fengyuan Co., Ltd. will bring 12 million yuan cash toobtainfour percent stake.

All contributors have agreed to give up their preemptive rights tosupport NFC to make over no more than 10 percent of its shares toGanzhou Qiandong Industry (Group) Co., Ltd. within the sixtiethnatural day before the construction work ends.

The contribution will go step by step so as to exert littlepractical influence on NFC'S financial conditions and corporateperformance.