15th Oct 2013 08:46
LONDON (Alliance News) - Rare Earths Global Tuesday said it has agreed a transaction with Tianjin Ruixiang Stone Investment Company Limited to secure key production quotas and licences in China.
The rare earth mining services group said that as part of the deal TRSICL will acquire 30% of Rare Earths Global's subsidiary Long Era Limited for a cash payment of RMB12 million.
In return, TRSICL has undertaken to secure a production quota of 300 tonnes and an export quota of 150 tonnes for REG's Sanxie plant and approvals from all the relevant government authorities to expand production at the site to 3,000 tonnes per year.
The company said that if TRSICL fails to meet any of these obligations it can re-purchase the 30% interest in Long Era Limited at the original consideration.
Rare Earths Global shares were flat at 80.30 Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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