China Shen Zhou Mining Increases Ownership of Three Subsidiaries; Shares Spike 6% But Remain Near 52-wk Low
China Shen Zhou Mining & Resources Inc. ( SHZ ) is up 6.3% after announcing that it has increased an additional 20% ownership stake in three of its recently acquired subsidiaries: Wuchuan Dongsheng Mining Company Ltd., Qianshi Resources Development Company Ltd., and Meilan Mining Company Ltd.
In early 2012, SHZ acquired 60% ownership of Wuchuan Mining, Qianshi Resources and Meilan Mining, all of which are located in Guizhou Province, P.R. China. Per the original agreements, SHZ would bear the debts of the acquired entities up to $7.89 million and the remaining liabilities would be settled by the sellers. As a result of failing to settle the additional liabilities, the sellers of the above three companies were obligated to transfer an additional 20% of the ownership to SHZ, awarding SHZ an 80% interest in all three subsidiaries.
SHZ is trading at $0.22, at the low end of its 52-week range of $0.19 - $2.73. Shares have fallen 90% in the last 12 months.
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