Worldcom Parkway International Trade (Tianjin) Co. Ltd entered into sale purchase agreement to acquire 91.25% stake in Shanxi Luyuan Magnesium Company Limited from China Magnesium Corporation Limited (ASX:CMC) for CNY 1 million on August 6, 2019. The transaction is subject to due diligence, third party approval, approval of regulatory board, approval of shareholders. As on September 18, 2019, the transaction has been unanimously approved by the Board. Upon completion, the board of Shanxi Luyuan Magnesium Company Limited will change immediately with China Magnesium Corporation Limited (ASX:CMC) and Worldcom Parkway International Trade (Tianjin) Co. Ltd will appoint new board members. On October 23, 2019, China Magnesium Corporation obtained shareholders approval for the SYMC disposal. The transaction is expected to close on February 29, 2020. On February 28, 2020, China Magnesium Corporation is negotiating with the Worldcom Parkway International Trade (Tianjin) Co. Ltd to extend the time to satisfy the conditions precedent for the sale from February 29, 2020 to a later time, factoring the current status in obtaining requisite shareholder and regulatory approvals. China Magnesium Corporation Limited will look to find alternative buyer in the event that no agreement is satisfactorily reached for the extension of time.