Dacheng Attorneys Advise Jiangxi Hongyi Mining Co. on Mining Rights and Assets Acquisition

In August 2013, Jiangxi Hongyi Mining Co., Ltd. successfully completed mining rights and assets transfer after signing a mining rights and assets acquisition contract that was later authorized by administrative bodies. A project team led by attorney Wang Fuchun from Dacheng Nanchang Office advised on the project.
 
The project, which involved both mining rights and assets acquisition, called for a sound mastery of knowledge on mining rights on the advisor’s part. The team led by Wang conducted due diligence on mining license, mining area map, geological section of the mine, mining rights assessment report, royalties payment for mining, mining rights cost, mineral resources compensation, compensation for use of mineral resources, deposit for mining area environmental restoration, clearance of disputes on mining rights ownership, mortgage of mining rights, mining land use, mining area equipment and road facilities, etc. The team suggested a four-phase payment scheme. These four phases referred to the signing of the non-disclosure agreement, the signing of the acquisition contract, approval from administrative bodies and registration of rights and assets ownership transfer. They also designed two acquisition plans. One of the plans featured professionally designed contractual terms from the perspective of risk prevention; the other calculated risk probability and maximum cost for the purpose of facilitating the deal. The services delivered by Dacheng attorneys, whether in relation to the design of contractual terms or in the negotiation of contractual terms, were highly recognized by the client.