Gulf Resources Inc. (NASDAQ: GURE) and Montes Verdes Participações Ltda. have signed a strategic cooperation agreement to establish a joint venture, combining the Chinese firm’s extraction technology with the Brazilian miner’s mineral portfolio.
The partnership targets bromine and lithium assets, with Montes Verdes committing to a minimum consolidated sales revenue of $180 million by 2027. The Brazilian company also pledges an annual sales growth rate of at least 20% for each of the five years following 2027.
Gulf Resources, headquartered in Shouguang, China, operates three wholly owned subsidiaries focused on bromine and crude salt production. Montes Verdes specializes in gold, manganese, lithium, bromine, and rare earth minerals. The deal aims to expand Gulf’s revenue streams beyond China while enhancing capital structure flexibility, according to CEO Liu Xiaobin.
If the 2027 target is met and profitability aligns with industry benchmarks, additional shares of Gulf Resources may be issued based on that year’s average price-to-earnings ratio. Both companies continue to finalize further terms of the agreement.
