June 28, 2010 (FinancialWire) — Gulf Resources, Inc. (NASDAQ: GFRE), a manufacturer of bromine, crude salt and specialty chemical products in China, said it has completed transfer of ownership of bromine and crude salt manufacturing assets and closed an asset purchase agreement that it entered into on June 8.

On June 21, the company paid the remaining 80% cash consideration of RMB 72,200,000 (around $10.6 million) to the sellers of the assets.

With support from the sellers of the assets, the company signed a land lease agreement with local authorities and obtained the required land use rights for the property.

Gulf Resources said it expects to start operations using the newly acquired assets by August 2010, after completing maintenance and upgrade.

In addition to the cash consideration, the company will issue 70,560 shares of its common stock to the sellers of the assets.

China-based Gulf Resources operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Co. and Shouguang Yuxing Chemical Industry Co., Ltd.

The company is a producer of bromine in China. Elemental Bromine is used to manufacture a range of compounds utilized in industry and agriculture. Through SYCI, the company manufactures chemical products utilized in a variety of applications, including oil & gas field explorations and as papermaking chemical agents.

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