Lomon Billions has announced its intention to purchase Sichuan Anning Iron and Titanium Co., Ltd (“Anning”), an ilmenite and iron concentrate producer in Panzhihua, China.
Anning produces around 480,000t of ilmenite and 2.3t of iron ore concentrate a year.
The acquisition is intended to enable Lomon Billions to produce sufficient ilmenite from the combination of Anning and its existing ilmenite operations in Panzhihua to satisfy essentially all its sulphate pigment feedstock requirements.
The purchase price is expected to be around RMB4.5 to 5bn (US$0.71 to 0.79bn).
In accordance with standard practice for companies listed on the Shenzen Stock Exchange, Lomon Billions has requested suspension of its shares to help avoid stock price anomalies.
The suspension is expected to last for about one month.