There are mine at home without panic!Xinyangfeng plans to acquire the second phosphorus mine

On the evening of July 8th, Xinyangfeng Agricultural Technology Co., Ltd. (hereinafter referred to as "Xinyangfeng") issued an announcement saying that it was planned to purchase 100%equity of Baogangzhuyuangou Mining Co., Ltd. for 535.318 million yuan in cash.

Xinyangfeng controlling shareholder Yangfeng Group Co., Ltd. (hereinafter referred to as "Yangfeng Group") has nearly 500 million tons of phosphorus ore resources. Before the listing of Xinyangfeng, Yangfeng Group promised to inject its mining companies in time in time in accordance with the principles of mature families to inject one family to improve the asset quality and continuous profitability of listed companies. In July 2021, Yangfeng Group injected the first mining company, Leibo Xinyangfeng Mining Co., Ltd. in injected 979.492 million yuan into Xinyangfeng. This time Yangfeng Group intends to bring the second mining company company ——The 100%equity of Baogang Zhuguangou Mining Co., Ltd. is injected into Xinyangfeng, which is another important measure for Yangfeng Group to fulfill its commitments.

Baokang Zhuyuangou Mining Co., Ltd. Zhuyuangou Phosphorus is in the territory of Baokang County, Xiangyang City, Hubei Province, with a mining area of ​​3.5km2. As an evaluation of relevant professional companies, as of May 31, 2022, the resource reserves of Zhiyuangou Phosphates had a resource reserves of 90.503 million tons and average P2O5 average geological product of 24.93%, and the equity value was RMB 535.318 million. It is reported that Zhuyuangou Phosphorus has previously obtained mining licenses and environmental assessment approval, which is currently under construction. The design of the mine is underground mining, with a production scale of 1.8 million tons/year.

Phosphate ore is a non -renewable resource. In recent years, domestic phosphorus and ore supply has been tight. Especially since this year, the price of phosphorus ore has risen again and again, and it is difficult to find it. Xinyangfeng's acquisition of Zhuangou phosphate ore can further expand the extension of the industrial chain to the supply side, optimize the company's business structure, further enhance the core competitiveness of the enterprise, stabilize the supply of phosphate ore The integrated advantage brings positive effects to reducing production costs.

The acquisition has been reviewed and agreed by the board of directors of Xinyangfeng, and it will be submitted to the company's shareholders' meeting for approval recently. (Li Qiao)

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