New stock news | Jiaxin International has submitted an application to the Hong Kong Stock Exchange. Bukuta tungsten mine is the fourth largest WO3 tungsten mining resource in the world.

According to the disclosure by the Hong Kong Stock Exchange on August 19, G-Resources Investment Limited (referred to as Jiaxin International) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC as its exclusive sponsor. The prospectus shows that Jiaxin International is a tungsten mining company based in Kazakhstan, focusing on the development of the Bakuta Tungsten Mine (Bakuta Tungsten Mine Project). According to Frost & Sullivan data, as of June 30, 2024, it is one of the world's largest open-pit tungsten mine with tungsten trioxide (WO3) mineral resources. According to Frost & Sullivan data, as of the same date, the company's Bakuta tungsten mine is also the world's fourth-largest WO3 tungsten mine in terms of mineral resources (including open-pit and underground tungsten mines), with the largest designed tungsten ore mining capacity in a single tungsten mine in the world. During the historical period, the company mainly focused on preparing for the commercial production of the Bakuta tungsten mine project. It is expected that the project will enter the trial production phase in the fourth quarter of 2024 to test and fine-tune the processing process, with a target mining and mineral processing capacity of 0.6 million tons of tungsten ore in 2024. Commercial production is expected to begin in the first quarter of 2025, with an annual target mining and mineral processing capacity of 3.3 million tons of tungsten ore in 2025. As of August 9, 2024, the company only had one mine (i.e. the Bakuta tungsten mine), and its recent revenue depends on this mine. According to an independent technical report, as of June 30, 2024, based on the JORC Code, the estimated mineral resources of Jiaxin International's Bakuta tungsten mine are approximately 110.4 million tons of ore containing 0.211% WO3 (equivalent to 233.2 thousand tons of WO3), including 98.5 million tons of indicated resources (0.209% WO3) and 11.9 million tons of inferred resources (0.228% WO3). As of the same date, according to the JORC guidelines, the Bakuta tungsten mine has proven ore reserves of 70.8 million tons, with an average grade of 0.205% WO3, equivalent to 145.4 thousand tons of WO3. Jiaxin International's Bakuta tungsten mine is located in the Yenbekshikazakh district of Almaty Region, Kazakhstan. It can be reached by road from Almaty, Kazakhstan, and through the Khorgos Port connecting Kazakhstan and China. Additionally, a railway connecting Khorgos and Almaty is located approximately 20 kilometers north of the Bakuta tungsten mine, and it is expected that the products can be transported smoothly after the commencement of commercial production. The Bakuta tungsten mine project also has readily available and affordable hydroelectric power supply. Under the soil use contract No. 4608-TPI (with three subsequent agreement protocols amendments and supplements, the soil use contract) signed with the relevant authorities of Kazakhstan, Jiaxin International holds the exclusive mining rights (rights to explore and extract tungsten ore) of the Bakuta tungsten mine. The mining contract specifies a mining area of 1.16 square kilometers, allowing for underground mining to a maximum depth of 300 meters, with a term from June 2, 2015 to June 2, 2040, lasting 25 years. With its abundant tungsten resources and reserves, expected cost-effective production, and convenient location in Kazakhstan, Jiaxin International plans to continue developing the Bakuta tungsten mine project into a world-class tungsten mining project. In particular, it plans to integrate the ore sorting system into the existing mining process by 2027 to increase the annual target mining and mineral processing capacity of tungsten ore to 4.95 million tons, and further construct a deep processing plant for producing high-quality ammonium paratungstate (APT) and tungsten carbide (WC). The company also plans to explore more opportunities for investing in non-ferrous metal resources in Central Asia. In July 2023, it signed a memorandum of understanding with the relevant authorities in Kazakhstan to explore potential cooperation in other new areas deemed suitable for further collaboration as the Bakuta tungsten mine project continues to develop. Financially, the Bakuta tungsten mine project has been in the exploration and development stage throughout the historical period, hence the company has not recorded any revenue. For the years ending on September 30, 2021, 2022, 2023, and September 30, 2024, the company incurred losses of HKD 26.117 million, HKD 94.45 million, HKD 80.129 million, and HKD 64.969 million respectively.