Luda Technology Signs Non-Binding MOU to Evaluate $14M Fluorspar Mining Project in Mongolia
Luda Technology Group Limited (AMEX:LUD), a manufacturer and trader of steel flanges and fittings, has signed a non-binding, non-exclusive memorandum of understanding with Chuluut-International LLC. The agreement allows Luda to evaluate acquiring 100% of the mining rights for the Jonsh Tolgoi fluorspar project in Tov province, Mongolia. For discussion purposes, the parties referenced an indicative purchase price of $14.0 million in cash, with an indicative target closing date on or before April 30, 2027.
The prospective transaction forms part of Luda's strategy to expand beyond its existing steel products business into critical materials, computing infrastructure, and regional supply chain trading. Fluorspar is a mineral key to manufacturing hydrofluoric acid, fluorochemicals, lithium-ion battery components, and semiconductor production chemicals. Alongside evaluating the acquisition, the company intends to begin trading third-party minerals from Mongolia into China to diversify revenue.
Because the agreement is entirely non-binding and non-exclusive, either party may withdraw without penalty or negotiate with third parties. Completion remains subject to full due diligence, formal contracts, regulatory approvals in Mongolia, and potential financing. Luda noted that it has no prior mining operating history and will need to hire qualified technical staff, secure permits, and raise significant capital to advance the project.
Key points
- Luda Technology Group Limited signed a non-binding MOU with Chuluut-International LLC to evaluate acquiring 100% of the Jonsh Tolgoi fluorspar project in Mongolia.
- The indicative consideration for the direct transfer of mining rights is referenced at $14.0 million in cash, with an indicative closing target of April 30, 2027.
- Fluorspar is an essential mineral used in steel production, lithium-ion batteries, fluorochemicals, and semiconductor manufacturing.
- Luda currently manufactures steel flanges and fittings, has no prior mining experience, and will require specialized personnel, permits, and funding.
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What agreement did Luda Technology Group sign in Mongolia?
Luda Technology Group signed a non-binding memorandum of understanding to evaluate acquiring 100% of the mining rights for the Jonsh Tolgoi fluorspar project in Mongolia from Chuluut-International LLC.
How much is the proposed acquisition of the fluorspar project?
The parties referenced an indicative consideration of $14.0 million in cash. However, this is not a fixed price and remains subject to due diligence, definitive contracts, regulatory approvals, and financing.
Does Luda Technology have prior experience in the mining sector?
No. Luda currently manufactures and trades steel flanges and fittings. The company noted it has no prior operating history in mining and would need to hire technical experts and obtain required permits.