Gulf Resources subsidiary to acquire crude salt fields for $39M

Gulf Resources announced that its wholly owned subsidiary, Shouguang Hengde Salt Industry, entered into a series of agreements to acquire crude salt fields for an aggregate price of RMB280,762,000 or approximately $38,619,257 based on the current exchange rate on July 3. The purchase includes 5 parcels of crude salt fields with a total size of 5,141,000 square meters. 80% of the transfer or RMB224,609,600.00, or approximately $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.