Gulf Resources Corrects its Prior Announcement of the Opening of the Subdivision of Factory #1
August 09 2019 - 8:30AM
On April 2 and April 11, 2019, Gulf Resources, Inc. (NASDAQ: GURE)
("Gulf Resources" or the "Company"), inadvertently announced that
Subdivision of Factory #1 was approved to re-open and begun
operation respectively. This announcement should have
reflected that Factory #1 was back online and begun
production. Factory #1 is one of the primary drivers of
operations for Company in the area and has (i) 6,442 acres,
compared to 0.79 acres used by the Subdivision of Factory #1, and
(ii) annual capacity of 6,681 tonnes, compared to the 3,186 tonnes
of annual capacity that the Subdivision of Factory #1 has. The
Company is issuing this press release to correct the prior
announcement.
The Subdivision of Factory #1 utilizes the resources of the land
of Factory #1, however as of today’s date, it has not yet
re-opened. The Company believes it will receive approval to begin
production at this factory in the relatively near future. Below are
details about each factory.
Property |
Factory No. 1 – Haoyuan General Factory |
Area |
6,442 acres |
Annual Production |
up to 6,681 tonnes |
Date of Acquisition |
February 5, 2007 |
Land Use Rights Lease Term |
Fifty Years |
Land Use Rights Expiration Date |
2054 (for mining areas only) |
The number of remaining years to expiration of the of the land
lease as of December 31, 2018 |
35.25 Years |
Prior fees paid for land use rights |
RMB8.6 million |
Annual Rent |
RMB186,633 |
Mining Permit No.: |
C3707002009056220022340 |
Date of Permission: |
July 2018, subject to renewal per three years |
Period of Permission: |
Three year |
Property |
Factory No. 1 Subdivision/Branch – State-owned Shouguang
Qinshuibo Farm |
Area |
0.79 acres |
Annual Production |
up to 3,186 tonnes |
Date of Factory lease |
January 1, 2011 |
Factory Lease Term |
Twenty Years |
Factory lease Expiration Date |
2030 |
The number of remaining years to expiration of the of the factory
lease as of December 31, 2018 |
12.0 Years |
Prior Fees Paid for Land Use Rights |
Not applicable |
Annual Rent |
RMB5,000,000 |
Mining Permit No.: |
Under application |
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"),
and Daying County Haoyuan Chemical Company Limited (“DCHC”). The
company believes that it is one of the largest producers of bromine
in China. Elemental Bromine is used to manufacture a wide variety
of compounds utilized in industry and agriculture. Through SYCI,
the Company manufactures chemical products utilized in a variety of
applications, including oil and gas field explorations and
papermaking chemical agents, and materials for human and animal
antibiotics. DCHC was established to further explore and develop
natural gas and brine resources (including bromine and crude salt)
in China. For more information,
visit www.gulfresourcesinc.com.
Forward-Looking StatementsCertain statements in
this news release contain forward-looking information about Gulf
Resources and its subsidiaries business and products within the
meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the
safe harbor created by those rules. The actual results may differ
materially depending on a number of risk factors including, but not
limited to, the general economic and business conditions in the
PRC, future product development and production capabilities,
shipments to end customers, market acceptance of new and existing
products, additional competition from existing and new competitors
for bromine and other oilfield and power production chemicals,
changes in technology, the ability to make future bromine asset
purchases, and various other factors beyond its control. All
forward-looking statements are expressly qualified in their
entirety by this Cautionary Statement and the risks factors
detailed in the company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.CONTACT: Gulf
Resources,
Inc.Web: http://www.gulfresourcesinc.com
Director of Investor
Relations Helen Xu
(Haiyan Xu)
beishengrong@vip.163.com
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