According to the Zhitong Finance APP, Guixin Group (08349) announced that after the trading hours of the Stock Exchange on October 2, 2024, the company signed a memorandum of understanding with the seller, expressing its intention to purchase 100% equity stake of the target company, Africa Metallurgical Mining Group.

It is reported that the target company was registered and established in 2023, focusing on geological exploration, mining, ore processing, smelting, and product refining. The target company has obtained exploration licenses for three mining areas (SOMANGUINA, PASGANPA, and YELEMBASSE) granted by the Government of Burkina Faso, covering a total area of 345.88 square kilometers.

The announcement stated that the acquisition of the target company provides a strategic opportunity for the company to diversify its investment portfolio and enhance its competitive advantage. By integrating the business of the target company, the company can mitigate external risks such as market fluctuations and geopolitical tensions, thereby strengthening its overall resilience and industry position. The potential acquisition is a proactive measure for shareholders to achieve long-term growth and enhancement of value.