1. Shengda Resources plans to acquire nearly half of the remaining equity of its first gold mine project; 2. Currently, the project is accelerating its construction.
On October 20, Caixin Media (Reporter Liang Xiangcai) After a year, Shengda Resources (000603.SZ) plans to acquire nearly half of the remaining equity of its first gold mine project, and the project is currently accelerating its construction.
Today, Shengda Resources announced that due to planning major matters, it plans to acquire 47% equity of Honglin Mining through the issuance of shares, and at the same time, plans to issue shares to no more than 35 specific objects to raise matching funds. The company's A-share stocks will be suspended from trading starting from October 21, 2024 (Monday), and it is expected to disclose the details of this transaction within no more than 10 trading days.
The announcement shows that Honglin Mining's industrial ore body has a cumulative proven resource volume of 6.056 million tons (exploration + control + inference), with a gold metal resource volume of 17,049 kilograms, an average grade of 2.82 grams/ton; and a copper metal resource volume of 29,015 tons, with an average grade of 0.48%. The low-grade mineral resource volume (exploration + control + inference) has an ore volume of 0.394 million tons, a gold metal resource volume of 120 kilograms, an average grade of 0.30 grams/ton; and a copper metal resource volume of 1,164 tons, with an average grade of 0.30%. The mining license for the Honglin Mining Yard Copper-Gold Mine is valid from November 25, 2019, to November 25, 2033, covering gold and copper mining, with a production scale of 0.396 million tons/year.
In fact, in November 2023, the company confirmed its investment in and acquisition of control rights over Honglin Mining by subscribing to the additional registered capital of Honglin Mining, with an additional capital payment of 0.3 billion yuan, to be paid in four installments. After the capital increase, Shengda Resources will hold 53% of the equity of Honglin Mining, making Honglin Mining a wholly-owned subsidiary of the company and included in the company's consolidated financial statements.
It is reported that the Caiyuanzi Copper-Gold Mine is located in Muli Tibetan Autonomous County, Liangshan Yi Autonomous Prefecture, Sichuan Province. The mining rights and related assets of the mine are the core assets of Honglin Mining. According to previous disclosures, the mine is a medium to large-scale copper-gold mine under development, and it is the company's first gold mining project.
Currently, Shengda Resources is accelerating the construction work of the Caiyuanzi Copper-Gold Mine. In a related announcement on September 27, the company mentioned that it will revise the content of the fourth installment payment of the capital increase in the agreement with Honglin Mining.
Specifically, all parties have agreed that for the financing purposes of Honglin Mining, at Shengda Resources' request, they will mortgage the mining rights of Honglin Mining to third-party financial institutions providing financing for Honglin Mining and handle mortgage registration, and within 5 working days from the date of publishing the mortgage registration of the mining rights of Caiyuanzi Copper-Gold Mine as agreed earlier and the announcement of the mining project construction tender, Shengda Resources will pay the capital increase of 0.1 billion yuan. Instead, upon receiving the full acquisition loan from financial institutions, within 5 working days (no later than December 31, 2024), Shengda Resources will pay the capital increase of 0.1 billion yuan.
The company stated that the Honglin Mining Caiyuanzi Copper-Gold Mine beneficiation project is currently under construction, and the modification of the related capital increase agreement is beneficial to meeting the working capital needs of Honglin Mining's production operation, accelerating the development and construction of the mine.
The announcement shows that as of March 31, 2024, Honglin Mining's total assets are 0.347 billion yuan, total liabilities are 0.295 billion yuan, net assets are 0.053 billion yuan, and the revenue for January to March 2024 is 0.00 yuan, with a net loss of -3.0854 million yuan (unaudited data).