Luda Technology Group Signed Non-Binding MOU to Evaluate Proposed Acquisition of mining rights in the Jonsh Tolgoi Fluorspar Project in Mongolia

Indicative cash consideration is US$14.0 million, but neither party is obliged to negotiate or complete an acquisition.

Rhea-AI Summary

Luda Technology Group (LUD) signed a non-binding memorandum with Chuluut-International to evaluate acquiring mining rights in Mongolia’s Jonsh Tolgoi fluorspar project. The proposed direct transfer covers 100% of legally transferable mining rights and related interests. Indicative consideration is US$14.0 million, currently expected in cash, but is not fixed. The parties aim to close any agreed transaction by April 30, 2027; that target may change or be abandoned.

The MOU is non-exclusive, permits withdrawal without liability and requires no advance payment. Any acquisition depends on due diligence, definitive agreements, Mongolian approvals and financing if required. Luda intends to expand beyond metals manufacturing, is seeking other Mongolian mining acquisitions and plans third-party mineral trading into China. The trading activity depends on supplier, customer, logistics and regulatory arrangements.

4 points · 0 major

NegativeiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed acquisition would add 100% of legally transferable mining rights and related interests in Jonsh Tolgoi.
• Minor pointMOU requires no deposit, break fee or other advance payment.
• Minor point. Forward-looking: it has not happened yet and may not happen.Luda is actively seeking other mining acquisitions in Mongolia as part of its expansion plans.
• Minor point. Forward-looking: it has not happened yet and may not happen.Luda plans third-party Mongolian mineral trading into China to pursue revenue diversification.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Indicative consideration of US$14.0 million is currently expected in cash and may be revised. 16% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Mineral trading depends on supplier, customer, logistics and regulatory arrangements being established.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Mining acquisition or development would require qualified personnel, consultants, permits and substantial additional capital investments.
• Minor pointMOU is entirely non-binding and non-exclusive; either party may withdraw without liability or pursue third parties.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acquisition depends on due diligence, definitive agreements, Mongolian approvals and financing if required.

3 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Closing target of April 30, 2027 is indicative and may be extended, changed or abandoned.
• Minor point. Forward-looking: it has not happened yet and may not happen.Project rights, production potential and economics remain subject to independent due diligence; historical information is unverified.
• Minor pointLuda has no prior mining operating history and currently employs no personnel with mining expertise.

News Explained

Any mining expansion would require new expertise, permits and capital, while the project’s historical information remains unverified.

Luda reports no prior mining operating history and no current mining-expert employees; acquiring or developing a mining project would require qualified staff and consultants, permits, and substantial additional capital.

The historical project information has not been independently verified and is not a current mineral resource or reserve estimate; project details remain subject to independent due diligence.

Key Figures

Indicative consideration: US$14.0 million Mining rights: 100% Indicative closing target: April 30, 2027 +2 more

Indicative consideration

US$14.0 million

Discussion figure for the proposed acquisition; expected to be paid in cash, but not a fixed purchase price

Mining rights

100%

Legally transferable rights and related interests covered by the proposed acquisition

Indicative closing target

April 30, 2027

Target for any agreed transaction; the date is non-binding and may change or be abandoned

Stated mine area

Approximately 27 hectares

Area stated in supplied permit records; project information has not been independently verified

Projected capacity

9.0 thousand tonnes per year

Capacity referenced in supplied state commission records; historical information, not independently verified

Key Terms

memorandum of understanding, flotation, mineral resource estimate, mineral reserve estimate, +1 more

5 terms

memorandum of understanding financial

"entered into a non-binding, non-exclusive memorandum of understanding"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

flotation technical

"uses flotation to produce FF-97 grade fluorspar concentrate"

Flotation is the process where a privately held business makes its shares available to the public by listing them on a stock exchange, commonly called an initial public offering (IPO). For investors it matters because flotation creates a market price and trading chance for those shares, signals a company's growth plans and need for capital, and changes how the business is governed — like a small shop selling ownership stakes to many new customers to raise money and spread risk.

mineral resource estimate regulatory

"not treating it as a current mineral resource or mineral reserve estimate"

A mineral resource estimate is a calculated approximation of how much metal or mineral material likely exists in a particular deposit and where it sits underground, similar to estimating how many cookies are in a jar by peeking at the layers. It matters to investors because it provides a data-based starting point for judging a project's potential value, future production and risks, while not guaranteeing recoverable or profitable amounts.

mineral reserve estimate regulatory

"not treating it as a current mineral resource or mineral reserve estimate"

A mineral reserve estimate is an expert calculation of how much economically recoverable mineral material exists at a site after accounting for costs, technology and legal permissions; think of it as the amount of usable, sellable product a mine is expected to produce. Investors care because it directly affects a project’s potential revenue, timeline and risk—larger, more certain reserves usually mean higher asset value and lower uncertainty about future cash flow.

qualified person regulatory

"No qualified person (as defined under Subpart 1300) has reviewed or verified"

A qualified person is someone with specialized knowledge, experience, and training in a particular field, allowing them to accurately assess and verify information or work. Their expertise helps ensure that reports, evaluations, or decisions are trustworthy and meet required standards. For investors, a qualified person provides confidence that the information they rely on is credible and properly validated.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Hong Kong, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Luda Technology Group Limited (NYSE American: LUD) (the "Company" or "Luda Technology"), a manufacturer and trader of stainless steel and carbon steel flanges and fittings products, today announced that it has entered into a non-binding, non-exclusive memorandum of understanding (the "MOU") with Chuluut-International LLC ("Chuluut-International") to evaluate the proposed acquisition of 100% of the legally transferable mining rights and related interests in the Jonsh Tolgoi fluorspar project (the "Project").

The proposed acquisition is intended to support Company’s strategy to expand beyond its established metals manufacturing business into advanced industrial and technology supply chains by leveraging its extensive global agency network and strong supply chain management capabilities. Fluorspar (calcium fluoride) is the main commercial source of fluorine. It is used as a flux in steel making and in aluminium production. Acid-grade fluorspar is the feedstock for hydrofluoric acid, which is used to make fluorochemicals, fluoropolymers, refrigerants and cooling fluids, lithium-ion battery materials, and high-purity chemicals for semiconductor manufacturing. The Company believes the Project could provide a foundation for participating in supply chains for these products, which serve technology, manufacturing, energy-storage, and infrastructure markets.

The proposed transaction forms part of the Company’s broader strategy to expand beyond its established metals manufacturing business into critical and advanced materials, data center and AI computing infrastructure, and other emerging technology opportunities across Asia. In addition to evaluating the Project, the Company is actively seeking other mining acquisition opportunities in Mongolia that could strengthen its access to strategic materials and complement its planned expansion into computing infrastructure. The Company intends to pursue these opportunities in a disciplined manner by leveraging its global agency network, supply chain management capabilities and experience serving industrial markets.

As a complementary commercial initiative, the Company also plans to trade mineral products produced by third-party mining operations in Mongolia for sale into China. The Company believes this trading activity could diversify its revenue sources, deepen its commercial relationships in Mongolia and China, and provide practical market experience while it evaluates longer-term mining investments. The commencement and development of this activity will depend on the Company establishing suitable supplier, customer, logistics and regulatory arrangements, and there can be no assurance that it will generate the anticipated commercial benefits.

Ma Biu, Chairman and Chief Executive Officer of Luda Technology, commented: “Fluorspar is a critical mineral that connects the steel industry we already serve with the chemical, battery, semiconductor and cooling technologies that modern infrastructure, including data centers, depends on. This MOU gives us a structured basis to evaluate the Project through thorough due diligence before making any commitment. We are also evaluating other mining acquisition opportunities in Mongolia and intend to explore the trading of mineral products produced in Mongolia for sale into China. We believe these initiatives could diversify our sources of revenue, expand our regional supply chain capabilities and provide experience that supports our broader strategy. We intend to proceed in a disciplined, step-by-step manner.”

About the Jonsh Tolgoi Fluorspar Project

The Jonsh Tolgoi fluorspar project is located in Bayandelger soum, Tov province, Mongolia. The records supplied to the Company refer to special permits MV-012214, MV-006506, and MV-016834, and identify Chuluut-International as the holder and project implementer. According to the supplied records, the mining license (Permit No. 6506A, Special Permit Certificate No. MV-006506) covers a stated mine area of approximately 27 hectares. The supplied 2019 technical and economic basis describes an open-pit fluorspar mine and beneficiation project that uses flotation to produce FF-97 grade fluorspar concentrate. A state commission act in the supplied records accepts the open-pit mine into operation and refers to a projected capacity of 9.0 thousand tonnes per year.

The Company has not independently verified this historical information and is not treating it as a current mineral resource or mineral reserve estimate. This information is not presented as, and should not be relied on as, a current mineral resource or mineral reserve estimate under Subpart 1300 of Regulation S-K. No qualified person (as defined under Subpart 1300) has reviewed or verified this historical information on the Company's behalf, and no assurance can be given that subsequent verification or exploration work will confirm the historical data or result in the delineation of mineral resources or mineral reserves. All information about mineral rights, resources, reserves, production potential, facilities and project economics remains subject to independent due diligence.

Transaction Overview

The MOU is non-binding in its entirety, including its provisions on non-exclusivity, confidentiality, announcements, costs, compliance and the indicative closing date. It is also non-exclusive, and either party may discuss or enter into arrangements with third parties about the Project. The MOU does not oblige either party to negotiate, sign definitive agreements or complete a transaction, and either party may withdraw at any time without liability. No deposit, break fee or other advance payment is payable under the MOU. The parties currently aim to close any agreed transaction on or before April 30, 2027. This date is an indicative target only and may be extended, changed or abandoned.

The acquisition would be a direct transfer of the relevant mining rights. For discussion purposes, the parties have referenced an indicative consideration of US$14.0 million, currently expected to be paid in cash. This is not a fixed purchase price and may be revised. Any transaction depends on due diligence, definitive agreements, Mongolian governmental and regulatory approvals, financing if required, and other conditions. There can be no assurance that definitive agreements will be signed or that any transaction will be completed, on the indicative terms or at all.

About Luda Technology Group Limited

Luda Technology Group Limited is a manufacturer and trader of stainless steel and carbon steel flanges and fittings products. The Company's history began with Luda Development Limited, incorporated in Hong Kong in 2004 and principally engaged in trading steel flanges and fittings. The Company also trades steel pipes, valves, and other steel tubing products and serves customers in China and international markets.

The Company is evaluating opportunities to expand into critical and advanced materials, data center and AI computing infrastructure, and related supply chain activities. It is also evaluating additional mining acquisition opportunities in Mongolia and potential arrangements to trade mineral products produced by third-party mining operations in Mongolia for sale into China. The Company has no prior operating history in mining and does not currently employ personnel with mining expertise. Any acquisition of mining rights or development of a mining project would require the Company to retain qualified technical personnel and consultants, obtain required permits, and make substantial additional capital investments, and there can be no assurance that the Company would be successful in doing so.

For more information, please visit Luda Technology's official website at www.ludahk.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. They include statements about the proposed acquisition, the indicative consideration, the targeted closing date, the Project’s characteristics and potential, the Company’s evaluation of additional mining acquisition opportunities in Mongolia, its proposed trading of mineral products from Mongolia into China, its proposed investments in the data center and AI computing infrastructure market, and its broader business, diversification and commercialization strategies. Words such as "may," "will," "expect," "intend," "plan," "believe," "target," "potential," and similar expressions identify forward-looking statements. These statements are based on current expectations and involve risks and uncertainties, including:

• the non-binding and non-exclusive nature of the MOU
• the results of due diligence
• the ability to agree and sign definitive agreements
• confirmation of title and transferability
• receipt of Mongolian governmental and regulatory approvals
• the availability of financing
• the unverified nature of the Project information
• fluorspar market conditions
• regulatory, political and economic conditions in Mongolia, China and elsewhere
• mineral resources or mineral reserves have been established in accordance with Subpart 1300 of Regulation S-K
• other risks described in the Company's filings with the U.S. Securities and Exchange Commission
• the Company’s ability to identify, evaluate and acquire additional mining assets in Mongolia
• the availability, quality, pricing and marketability of mineral products sourced from third-party mining operations
• the Company’s ability to establish supplier, customer, logistics and distribution arrangements for mineral trading
• import, export, customs, foreign-exchange and other regulatory requirements in Mongolia and China
• commodity-price volatility and demand for mineral products
• counterparty, credit, transportation and supply chain risks
• the Company’s limited operating experience in mining and mineral-product trading
• the possibility that the proposed initiatives may not generate revenue or achieve the expected diversification benefits

Actual results may differ materially. The Company has no prior mining operating history and would need to retain qualified personnel and make substantial additional investments to develop a ming project. Forward-looking statements also include the proposed investment in data center, AI computing infrastructure market, and the Company’s business strategy. These statements are based on the Company’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to update any forward-looking statement except as required by law. Investors are cautioned not to place undue reliance on these forward-looking statements.

Luda Technology Investor Relations
Email: ir@ludahk.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What mining rights is Luda Technology proposing to acquire, and at what price?

Luda is evaluating a direct transfer of 100% of the legally transferable mining rights and related interests in the Jonsh Tolgoi fluorspar project from Chuluut-International. Indicative consideration is US$14.0 million, currently expected to be paid in cash. The price is not fixed and may be revised.

When does Luda Technology aim to close the Jonsh Tolgoi acquisition?

The parties currently aim to close any agreed transaction on or before April 30, 2027. This is an indicative target that may be extended, changed or abandoned. Completion depends on due diligence, definitive agreements, Mongolian governmental and regulatory approvals, financing if required, and other conditions.

What historical operating information is available for Luda Technology’s proposed Jonsh Tolgoi acquisition?

Supplied historical records describe an open-pit fluorspar mine and processing project, with a state commission act referring to projected capacity of 9.0 thousand tonnes per year. The supplied 2019 technical and economic basis describes flotation production of FF-97 grade concentrate. Luda has not independently verified this information, and it is not a current mineral resource or reserve estimate.