Tianshan Textile: Twists And Turns

In the past year, under the guidance of the Xinjiang government, how did Katie invest and participate in the pformation of the listed companies that had been struggling with the development of Xinjiang's high-quality mining resources? What kind of hardships did they experience during this period?

"Tianshan textile shareholders' meeting has examined and approved the company's issue of shares to buy assets.

The next thing we need to do is to report the reorganization plan to the SFC, which means that the restructuring of Tianshan textile industry is taking a big step forward. "Zhang tianqiang, director and deputy general manager of Xinjiang Katie Investment Co., Ltd., told reporters at the shareholders meeting of Tianshan textile yesterday.

"The Tianshan textile reorganization started in July 31st last year is divided into two stages. The first stage is Katie's controlling right to invest in Tianshan textile.

The agreement includes the pferable shares of Hongkong Tianshan and other companies and the pfer of state-owned shares through administrative pfer.

At present, Katie has completed all the equity pfer procedures and owns 56.78% of Tianshan textile and has become the absolute controlling shareholder.

Zhang Qiang said, "next, what we have to do is to buy shares of the west mining industry, and install the copper mine into Tianshan textile, and complete the directional issuance of Tianshan textile."

On the loess slope of Hami, 500 kilometers away from Urumqi, about 200 people risked Gobi's intense summer heat of 50 C.

The issue of shares to buy 75% stake in Xi Tuo mining is the core content of Tianshan textile reorganization, and disputes surrounding Xi Tuo mining holding rights are very tortuous.

In February 2005, the Xinjiang Hua Lu mineral company, a Chinese Australian who paid the civil code, applied to the Ministry of land and resources in accordance with the law to obtain the "73.29 square km copper zinc polymetallic deposit risk prospecting right" in the loess slope of Hami, Xinjiang.

In November 2006, Fu Min Lu introduced the venture prospector Wang Jingyu to join in the exploration and raise funds for relay exploration. After the continuation of the exploration, all of the investment made by Wang Jingyu will enjoy 50% risk exploration rights.

In November 2007, a breakthrough was discovered in prospecting. In order to make preparations for further exploration and exploitation, the two Fu Minlu and Wang Jingyu submitted their approval to the Ministry of land and resources in accordance with the law, and removed the right of prospecting for the loess slope from the Xinjiang cooperation company of the two sides, and pferred to the limited company established by the two sides of the Xinjiang west mining industry, and then increased investment in exploration. Finally, in 2009, the discovery was made today.

Reporters learned from various sources that Fu Min Lu was an experienced expert in geological prospecting.

In 2005, before the declaration of prospecting rights in the above-mentioned area in Xinjiang Hua Lu mining industry, the land and resources department approved the Hami loess slope area as the "prospecting right blank area", so the acquisition of prospecting rights in the area did not need to pay the prospecting rights.

Through the geological information obtained by years of arduous exploration, Fu Min Lu and Wang Jingyu firmly believed that there is possibility of finding large and medium metal deposits in the area.

They organized dozens of experts and geologists at home and abroad, invested a lot of money, overcame many difficulties, and worked hard for five years.

Wang Jingyu's Lawyer Wang told reporters: "in fact, Fu Wang cooperation soon found a vein, but it is not yet able to accurately explain reserves with comprehensive and detailed exploration data, and it is not publicly available.

At this stage, Fu and Wang continue to increase investment in venture exploration funds and speed up exploration, but in the end, the outside world still knows.

Immediately, many large Chinese and foreign companies, including well-known domestic mining enterprises, came to ask for cooperation.

In the process of negotiations and hesitation, Katie invested in a prudent and professional way to appoint a team of geological and mineral experts to conduct a detailed investigation of the loess slope area before launching a business negotiation with us.

We believe that Katie's investment is a local state owned enterprise in Xinjiang. Its steady and heavy working style will bring more convenience to the subsequent exploration and mining work. The copper mine was discovered in Xinjiang. It is more confident to give the ore to the Xinjiang government's leading mining, and Katie's investment promised us to retain 50% of the shares, which is in line with our wishes.

In particular, the design of Xi Tuo mining will be listed on its own in the future, leaving us a great imagination for our future cooperation.

Although the two sides have made clear the intention of cooperation, the negotiation process is difficult and tortuous. Both sides are based on the future development of enterprises and negotiate the purchase price in accordance with the principle of marketization.

In July 2009, Katie's investment in Katie mining started the acquisition of the west mining industry. The two sides signed the supplemental agreement in November, and finally decided to buy 25% of the shares of Qinghai's snow chi (Wang Jingyu one company) and Fu Minlu's west mining industry for 306 million 500 thousand yuan, together with the 50% share of the west mining industry.

At the same time, the new and old shareholders jointly made two capital increases to the west mining industry, so that the registered capital of the west mining industry reached more than 200 million yuan.

Zhang Qiang said: "Katie's acquisition of the west mining industry is based on the approval of the SASAC, through geological experts to repeatedly check the early exploration workload of the mine, conduct a careful re examination of the comprehensive geological results such as geological reports and mineral samples, and make a repeated calculation of the mineral resources, so as to obtain a pure market behavior at the base price of the market without any loss of state assets.

With the support and guidance of the leading group of the property rights, the state owned assets supervision and Administration Commission and the financial office of the autonomous region, the reorganization has been carried out in an orderly manner.

During the restructuring process, intermediaries such as brokerages, lawyers and other intermediaries made a lot of in-depth verification of the assets to be taken, which verifies the rationality of the acquisition.

Wang said: "Fu Minlu and Qinghai Xue Chi's 306 million 500 thousand yuan equity pfer fund, 106 million 500 thousand yuan has been invested in the West extension company through the way of capital increase, and is used for mining construction.

Fu Minlu and Qinghai Xue Chi actually get only 200 million yuan, less than half of other acquiring company's offer.

And this part of the fund is used to compensate for the original 70 million yuan original shareholders' risk exploration investment, and the other part is used to compensate the risk exploration investment that is not recognized by the new shareholders but does happen.

If it is not confidence in the future development of the west mining industry, it is impossible to make such a decision.