TD Holdings, Inc. (NASDAQ: GLG) disclosed that the firm and the fully-owned unit of Tongdow E-Trade Limited have inked a letter of intent with Chenzhou Dingmei Silver Co., Ltd. for purchasing the ownership of a molybdenum copper ore in Kazakhstan.
As per the LOI, Chenzhou shall move 100% of the copper ore mine and 100% of equity capital ownership of East Kazakhstan Group firm to GLG and Tongdow E-Trade for a total payment of RMB 98 million paid in shares and cash. The LOI also offers the additional investment of RMB 80 million by the firm for the construction of facilities and operations of the mine.
Shares of TD Holdings Inc. went up 10.11% at +0.18 during the trading session of Tuesday. It has recorded a trading volume of 1.55 million as compared to the average volume of 1.17 million. Looking at its profitability, it has ROA, ROE, and ROI of -6.30%, -7.00%, -5.30%. The firm has a total market capitalization of $160.43 million at the time of writing.
Molybdenum copper often is metal ores with rare valuable metals such as raw silver selenium rhenium tellurium. Molybdenum coppers are essential materials commonly used in the aerospace and military industries. The buying of copper ore signals the beginning of its hunting efforts for upstream funds in ore assets.