Jade Art Group Inc. (JADG.OB), a leading manufacturer of both hand-carved and machine-carved wood products in China, announced that their wholly owned subsidiary ‘Jiangxi SheTai Jade Industrial Co., Ltd’ has signed an Exclusive Distribution Right Agreement with Wulateqianqi XiKai Mining Co., Ltd [XiKai] for the distribution of jade.
This agreement will commit XiKai to sell 90% of raw jade material produced from Jade’s SheTai mine, located in Wulateqianqi, China. In exchange for this exclusive right, Jade Art Group is to transfer 100% ownership interest in their wholly-owned subsidiary, Jiangxi XiDa Wooden Carving Lacquerware Co., Ltd , in addition to $8.3 million in cash.
Lu-Shan Cheng, Mayor of Yujiang County, who attended the signing ceremony, stated, “The Yujiang government looks forward to JST’s involvement in the region and will provide full government support.”
Hua-Cai Song, CEO of Jade Art Group, added, “Through this Exclusive Distribution Right Agreement, Jade Art Group receives exclusive distribution rights for the jade mine with the largest reserves in China. The average selling price per ton of jade in China is roughly RMB 20,000 (approximately USD $2,750), which should enable us to reach significant profit levels. We are very excited about the Company’s new focus in the jade industry, including our association with XiKai and its extensive high-quality jade reserves.”
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