Shanxi Puda Coal Signed Deal Mining Rights And Transfer Of Mining Assets

Shanxi Puda Coal Group, a subsidiary of Puda Coal, one of the largest suppliers of the largest metallurgical coking coal, signed the agreement and transfer of mining assets, mining companies coal mining Da Wa Pinglu County Coal Co. Indsutry. Pinglu County Guanyao and Coal Industry. Puda Coal will own 100% of mining assets, all assets purchased will be placed in two newly formed companies.

In accordance with the agreement, Da Wa Guanyao Coal Coal will be responsible to cancel or terminate the employment contract (or work) with their staff, pay all unpaid wages, premiums and welfare costs, and bear all costs resulting from the cancellation or termination of employment contract .

Total price of purchased assets transferred Da Wa Coal is RMB 190 million ($ 27.8 million), which RMB 46.6 million ($ 6.8 million) was for Da Wa's intangible assets and RMB 143.3 million ($ 21.0 million) for mining rights and compensation to previous owners. For Coal Guanyao, the purchase price reached RMB 94.8 million ($ 13.9 million), which RMB 37.6 million ($ 5.5 million) is for Guanyao's intangible assets and RMB 57.2 million ($ 8.4 million) for mining rights and compensation to previous owners.