Wintrue acquires stake in mining firm, boosts phosphate reserves

Chengdu Wintrue Holding announced a strategic move to increase its phosphate rock reserves and supply capacity by acquiring a 49% equity stake in Sichuan Mabian Shenglong Mining. The company will invest 4,900 million yuan in Shenglong Mining, with the total registered capital increasing from 5,000 million yuan to 10,000 million yuan. Shenglong Mining's primary asset is the Erbadi Phosphate-Lead-Zinc Mine, boasting estimated phosphate rock reserves of approximately 2,927.10 million tonnes with an average P2O5 grade of 23.37%.

In addition to the equity investment, Wintrue Holding will provide a loan of up to 50,000 million yuan to Shenglong Mining, with a term not exceeding five years, at an interest rate based on the five-year LPR. This loan, alongside a proportional loan from the other shareholder, Xinyongzhiyuan, will support the acquisition of the mining rights and fund the mine's restart and production. The total value of the mining rights and related assets acquired by Shenglong Mining through auction was 78,706.75 million yuan.

The investment aims to secure a stable supply of phosphate rock for Wintrue Holding, enhance its core competitiveness, and optimize phosphate resource utilization. This ensures that the company can maintain its advantage in the phosphoric acid industry.