CD International Enterprises Inc (OTCMKTS:CDII) made a big move during the previous day’s session after it notified of receipt of a substantial order by its wholly owned subsidiary. In a press release published by the company, it noted that subsidiary Capital Resources Management Corporation has received a purchase contract of copper concentrate for nearly 240,000 tons. The purchase order tenure will stretch to a period of 24 months.
Under the terms of the purchase contract, CD International Enterprises Inc (OTCMKTS:CDII) will deliver 10,000 tons of copper concentrate each month for a total number of 24 months. Based on the current spot price of copper, the company determined the value of the purchase order at roughly around $350 million. To fulfil the order, the company plans to source the copper concentrate from Peru and Chile, following which, it will commence the delivery in 2016.
The management will fund the transaction by transferring a portion of the Letter of Credit issued by the buyer to its supplier. The company determined that it will not need any further financing to complete the transaction.
On account of this development, the company’s Chairman and CEO, Dr. James Wang said that the purchase order is a significant contract for the company. He added that the company has been involved in delivering copper concentrates to buyers in China by sourcing the same from Chile and Bolivia. He highlighted the company’s efforts to strategically position itself to help the smooth transfer of supplies from South America to buyers located in China. Wang is confident that the successful delivery of copper concentrates as per the purchase order will potentially change the company’s future in the coming years.
Following the announcement, the stock price of CD International Enterprises Inc (OTCMKTS:CDII) climbed by as much as 2,253.85% to close the session at $0.0306.