China Natural Resources, Inc., a company based in the People's Republic of China, announced that it has entered into an agreement with Feishang Group Limited to acquire all of the issued and outstanding shares of Pineboom Investments Ltd., and its wholly-owned subsidiaries, Coal Group, from the shareholder and to acquire the outstanding indebtedness payable by the Coal Group to the shareholder on the closing date.

Pineboom, through its operating subsidiary, Guizhou Dayun Mining Co., Ltd., owns exploration rights to Huajuejingtian North Sector Coal Mine, a coal mine covering a total area of 16.93 square kilometers located in Jinsha County, Guizhou, the PRC.

The Hong Kong-based company said that the purchase price for the shares and indebtedness is US$25 million, subject to adjustment, based on the amount of coal resources available in the mine.

The company expected to close the deal in the first quarter of 2009.

Commenting on the acquisition, the company's chairman and chief executive officer. Feilie Li said, "We are positive about the prospect of the coal mining industry in the PRC. In view of the continuing economic growth in the PRC, we believe that demand for coal will continue to be robust in the foreseeable future and the tension for global energy demand will continue".

CHNR closed Tuesday's regular trading session at $16.90, up $0.33 or 1.99%.In the after-hour trading, the stock gained $0.60 or 3.55%, and is trading st $17.50.