6 billion shares of the group's mining assets in Baotou Steel trading

NetEase Financial March 14, Baotou Steel shares 12th announced the announcement of Non-public offerings, including the holding shareholder of Baotou Steel Group, not more than 10 special investors issued not more than 1.63 billion shares, the issue price is not less than 3.68 yuan/share, the total amount of fund-raising not more than 6 billion yuan, For the acquisition of Baotou Steel Group quality mine assets.　　Among them, Baotou Steel group will be not less than 500 million yuan not more than 2 billion yuan in cash to subscribe to the private issue of the shares.　　The plan shows that the collection of funds in the deduction of the issue of the specific investment after the two, including the acquisition of Baotou Steel Group, run a limited liability company 100% stake, as well as the acquisition of Baotou Steel Group owns the Bayan OBO Iron ore West Mine mining rights. Bayan OBO West Mine is one of the largest orebody groups in the world famous Bayan obo deposit, it is located in hilly area, the surface vegetation is typical vegetation of arid steppe, there is no perennial surface water flow, the groundwater is completely dependent on atmospheric precipitation, and fluorine content is high. Most of the land around the project area is wasteland, the area is sparsely populated and the environment is less sensitive.　　The West Mine mining area ranges from 21 inflection points, the mining depth from 1674 meters to 1210 meters elevation, mining mode for open-pit mining.　　September 2005, the Ministry of Land and Resources to review the record of the Bayan OBO Iron ore Mineral Resources reserves of 667 million tons, the West mine is expected to the value of mining rights of about 2 billion yuan. Baogang shares said that the acquisition of Baotou Steel Group high-quality mining assets, will help to stabilize the price fluctuation of iron ore to the company's production and operation of uncertainty, reduce production and operation risk, enhance the company's profitability.　　On the other hand, it also helps to reduce the related transaction between Baotou Steel Group and the company, which makes the company's governance structure further optimized and its independence further enhanced. Secondary market, the change in the stock trading today, closed trading has not been opened, the stock price of 5.27 yuan, trading volume is weak. Responsible Editor: NF058