The company will buy Hunan Yin Lian in exchange for RMB30m ($4.66m) in cash, up to 20 million newly issued ordinary shares of Gushan and up to a 14.17% interest in Engen Investments, subject to adjustment pursuant to an earn-out arrangement.
Engen Investments is a direct, 75%-owned British Virgin Islands subsidiary of Gushan.
The closing of each of the transactions is subject to the satisfaction of, among others, customary closing conditions, including receiving approvals from relevant Chinese governmental authorities.
China-based Hunan Yin Lian is currently engaged in the recycled copper business.
