Luyin Investment to develop iron mine

Luyin Investment (600784) announcement, the company in May 27, 2010 with the natural person Rai Jihao signed "Share transfer and Mineral Resources development Cooperation Agreement", to 2.75 million yuan price by let Rai Jihao hold the Qingdao Hero Mining Co., Ltd. 55% shares, and the Qingdao hero has the mineral resources to carry out cooperative development.　　The two sides agreed that luyin investment in the period before December 31, 2010 will be to Qingdao hero investment amounted to 110 million yuan. Data show that Qingdao hero has a legal area of 15.1 square kilometers of exploration rights.　　A total of 5 iron ore bodies in the exploration block, of which 2nd ore body after exploration of the proven reserves of 4.845 million tons, in August 2009 to obtain the corresponding mining permit, the current underground mining project is underway, is expected to start in August 2010 ore. In recent years, Luyin investment has been actively exploring the direction of development and investment, through a variety of research and analysis, screening demonstration, that Qingdao hero iron ore project mining conditions, convenient transportation, considerable economic benefits, investment recovery period is short, in line with the company's development needs. Luyin Investment said that this equity acquisition can enhance the company's future development potential and promote the company's sustainable development. If Qingdao hero production and management to achieve the forecast effect, will make the consolidated statement of asset-liability ratio down, operating income increased, profit rise.