09:25 AM EDT, 07/03/2024 (MT Newswires) -- Gulf Resources ( GURE ) said Wednesday its subsidiary, Shouguang Hengde Salt Industry, has agreed to acquire five parcels of crude salt fields in China for about 280.8 million Chinese renminbi ($38.6 million.)

The company said that 80% of the purchase price, or 224.6 million renminbi, will be paid in cash after the agreement is signed. The remaining 20% will be paid in the form of company shares within three months of signing the deal after field inspection and acceptance by Shouguang Hengde, Gulf Resources ( GURE ) added.

The bromine producer said it intends to open two factories and expand well drilling to support production capacity, with operations expected to commence in the first half of 2025.

Shares of the company were up by nearly 12% in recent premarket activity.

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