Jade Art Group, Inc. announced today that their wholly owned subsidiary, Jiangxi SheTai Jade Industrial Co., Ltd, (JST), signed a sales agreement for the distribution of raw jade to QuanZhou TianXiaHuiCui Jade Company Ltd. (QZTX).
The terms of the agreement call for QZTX to purchase a total of 3,500 tons of raw jade consisting of various qualities from JST for US$11.2 million over the next year. QZTX will be primarily responsible for the shipment of the raw material, as well as any additional costs. Upon each shipment before delivery, JST will receive 30% of the contracted value of each shipment, and the balance will be paid during final inspection and approval by QZTZ.
With over 150,000 jade carving factories in China, QZTX is expecting great things to evolve from the agreement with JST. QZTX is located in the “city of stone carving” Huian, QuanZhou, in China. In this province alone, there are more than 1,000 large jade carving and processing factories, which generate around US$1.5 billion annually in production.
The SheTai Jade mine is unique in itself, in that they include some of the oldest jade ore found in China, and the pieces that are extracted from there are considered to be of highest quality in terms of rigidity and relative size. SheTai Jade is just as hard as quartz, with a degree of hardness between 7.1 and 7.3 on the Mohs scale, a number that is much higher than jade. The SheTai Jade is abrasion resistant, smooth, and highly reflective. The gems are translucent with a pure green color, and due to its characteristics, the SheTai Jade can be used in commercial construction, decorative jade artwork, and intricately carved jade jewelry.
Hua-Cai Song, CEO of Jade Art Group, stated, “Jade Art Group has developed quickly over the past several months. By signing our distribution right agreement with XiKai, we are guaranteed a stable and long-term jade supply of 40,000 tons per year at an attractive price. Jade Art Groups four sales agreements to date are worth a total of US$23.1 million. We are confident that the increasing popularity of SheTai Jade will facilitate our further expansion in China’s jade industry.”
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