Yinren Group Successfully Acquired DM MINERACAO LTDA
On 12th Jan, 2012, Mr. Shen Xiaoan, president of Yinren Group, had a face- to- face talk in Shanghai with Heraldo and Shukry, who were in charge of DM MINERACAO LTDA. They signed an acquisition agreement so that Yinren Group successfully acquired equities of DM MINERACAO LTDA.
In June, 2010, an investigation team organized by China Diamond Exchange has discovered that status of Brazilian diamond mines is a remarkable opportunity for Chinese companies intending to march into diamond market. The Diamond Exchange introduced DM MINERACAO LTDA to some powerful domestic companies, Jiangsu Yinren Group included. Jiangsu Yinren Group’s Board of directors studied this case discreetly. In October, 2010, Yinren Group reached cooperation intention with original shareholders of DM MINERACAO LTDA. In December, 2010, along with specialists, Yinren Group’s board members conducted an on- the- spot investigation and mastered a more particular knowledge of the diamond mine. In the end of 2010, concerning overseas acquisition of DM MINERACAO LTDA’s equities, Jiangsu Yinren Group filed an application to MOFCOM and NDRC and got the approval. In 2011, Yinren International Diamond (Shanghai) Co., Ltd established Yinren International (H.K.) Holdings Co., Ltd in Hong Kong and conducted an acquisition of DM MINERACAO LTDA’s equities afterwards. At the beginning of 2012, as the first domestic company in the development history of Chinese diamond industry, which acquired overseas diamond mine, Yinren Group made an agreement with DM MINERACAO LTDA.
DM MINERACAO LTDA has mineral concessions of 4 parcels. The mine field reaches an area of more than 6,000 hectares. The total reserve is estimated to be 57 million carats, among which 16 million carats raw diamond can be mined currently. Raw diamond in the mine field is of high quality, above 95% of which is gem- standard. The average clarity is VS1 (a lot reaches IF) and the color is between I and H. Besides, colored diamond, such as pink diamond and pure yellow diamond, has been discovered.
Yinren Group and DM MINERACAO LTDA signed the acquisition agreement