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SHOUGUANG, China, July 03, 2024 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) (“Gulf Resources”, “we,” or the “Company”), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that its wholly owned subsidiary, Shouguang Hengde Salt Industry Co. Ltd (“SHSI”), entered into a series of agreements to acquire crude salt fields for an aggregate price of RMB280,762,000 (approximately US$38,619,257 based on the current exchange rate on July 3, 2024).
The purchase includes 5 parcels of crude salt fields with a total size of 5,141,000 square meters (approximately 1,270 acres).
80% of the transfer or RMB224,609,600.00 (approximately USD $30,895,406) will be paid in cash upon signing of the agreements. The remaining 20% will be paid in shares of common stock of the Company within three months from the date of the agreements after SHSI has inspected and accepted the crude salt fields in writing.
The acquisition of these crude salt fields may enable Gulf Resources to open bromine factories #2 and #10. In addition, with the additional crude salt fields, the Company will be able to drill more wells and achieve a higher level of utilization.
The Company estimates that it will take 6-9 months to prepare for the opening of the two factories. The company will build out the salt pans and drill new wells. Production is expected to begin in the first half of 2025.
“We are pleased to have reached these agreements with the government of Shouguang City and Yangkou Town,” stated Mr. Xiaobin Liu, the CEO of Gulf Resources. “With additional crude salt fields, we may not only be able to reopen our two remaining closed factories, but also drill new wells and achieve increased utilization, while protecting the welfare of the local population.”
“In addition,” Mr. Liu added, “with the money invested in flood protection, we expect to safeguarding the bromine facilities and other impacts we have experienced in the past.”
“While the Chinese economy continues to struggle,” Mr. Liu concluded, “we are very optimistic about the future for bromine and crude salt. Bromine is a mineral that is only produced in a few regions. Almost 75% of world-wide production comes from the Dead Sea region of Israel and Jordan, where conflicts are still ongoing. New opportunities for zinc/bromine batteries as well as sodium-ion batteries could present significant future opportunities. We are pleased to take these steps to increase our bromine and crude salt production, as we are convinced prices may rise in the future.”