Summary by Moomoo AI
China Graphite Group Limited announced that on February 21, 2024, its indirect wholly-owned subsidiary Yixiang New Energy was formally approved by the National Bureau of Forestry and Grassland to acquire forest use rights in Heilongjiang Province, China for RMB 86,922,090. The forest land will be converted from forest land to industrial sites for the construction of new mining and processing plants to increase graphite extraction and reduce production costs. The Company plans to increase graphite production at the Kitayama Mine to over 500,000 tonnes per annum and to use the remaining net non-active listing proceeds of approximately RMB 71.7 million for forest acquisition costs. This move aims to optimize the strategic layout of the company, increase competitiveness and deliver better returns for shareholders. The Company also plans to mobilise the relevant funds by the end of 2024 and expects construction of the new mine site to be completed by the end of 2025.