On September 25, Yunhai Metal announced that Yunhai Metal and the people's Government of Wutai County, Shanxi Province, signed an annual output of 100000 tons of high-performance magnesium-based light alloy and deep processing project strategic cooperation framework agreement.
Yunhai Metal said that in order to further promote the healthy development of the magnesium industry, ensure a stable supply of raw materials in the industry, and at the same time expand the application of magnesium alloys in the field of deep processing, and further enhance the company's competitiveness and profitability, The people's Government of Wutai County, Shanxi Province (hereinafter referred to as "Wutai Government" or "Party A") supports Nanjing Yunhai Special Metals Co., Ltd. (hereinafter referred to as "Company" or "Yunhai Metal" or "Party B") to invest in the construction of a high-performance magnesium-based light alloy and deep processing project with an annual output of 100000 tons in Wutai County (hereinafter referred to as "this project"), in order to jointly promote the investment construction and preliminary work of this project, After full communication and friendly consultation, all parties have clearly defined their rights and obligations and jointly reached a framework agreement on strategic cooperation under the principle of "complementary advantages, mutual benefit and win-win results, benefit sharing and common development."
Yunhai Metal pointed out that the company invested 100000 tons of high-performance magnesium-based light alloy and deep processing project in Wutai County, Shanxi Province, mainly engaged in mining, transportation, smelting, deep processing production and operation, the total investment of the project is not less than 2.5 billion yuan.
The company intends to invest its own funds in the capital project, and this investment does not constitute a related party transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the Administration of Major Asset reorganization of listed companies.
The agreement signed this time is a cooperation framework agreement and does not need to be submitted to the board of directors and shareholders' meeting for consideration in accordance with the articles of Association and relevant provisions.
This agreement is only a framework agreement, and the specific details of the cooperation need to be negotiated. At the same time, the project is affected by relevant industrial policies, industry cycle, market environment, government examination and approval and other factors. There is still some uncertainty in the project approval matters involved in the agreement, such as the application for land approval and the acquisition of mining rights, and the specific investment needs to be examined and approved by the board of directors or shareholders' meeting or other authorities.
