FIRST SHANGHAI: WANGUO GOLD GP (03939) introduces strategic investor Zijin Mining Group's subsidiary to accelerate business transformation.

FIRST SHANGHAI released a research report stating that, according to the announcement on September 22, 2024, WANGUO GOLD GP (03939) entered into a subscription agreement with the subscriber. The subscriber conditionally agreed to subscribe for a total of 165,600,000 shares of the company at a subscription price of HK$8.33 per share. The subscriber is a wholly-owned subsidiary of Zijin Mining Group, Jinshan (Hong Kong) International Mining Company. This subscription represents 20% of the total number of issued shares and 15.28% of the total number of shares after the expansion. According to the subscription agreement, 50% of the net proceeds will be used for the exploration and development of the Gold Ridge mine in the Solomon Islands, and the remaining 50% will be used for general operating funds of the company. This collaboration with Zijin Mining Group not only provides funding to accelerate the development of the Gold Ridge project in the Solomon Islands but also facilitates sharing of experience and provides support for the company's overseas mining technology and mine operations. The bank stated that the company is gradually transforming into gold mining and entering a new stage of business development. According to the announcement on September 17, the company's name has been changed from "China International Mining Group Limited" to "WANGUO GOLD GP Limited", emphasizing the company's market positioning as focusing on gold mining and processing as its main business, gradually entering a new stage of business development. The company currently owns three major mineral resources in Yifeng Xinzhuang, Changdu Walage, and Gold Ridge in the Solomon Islands, with the Yifeng Xinzhuang mine having an annual mining capacity exceeding 1 million tons and increasing copper and iron ore mining efforts in the first half of the year due to rising copper prices; the Gold Ridge gold mine has a designed annual mining and selection capacity exceeding 3 million tons, with ore reserves reaching 72 million tons and the potential to become a world-class gold mine; the Changdu Walage mine is currently undergoing exploration and development with approximately 1.6 million tons of lead, silver, and gold metal content. The company's production of gold concentrate in the first half of 2024 reached 22,256 tons, with gold ingots and gold concentrate accounting for over 50% of the company's revenue and gross profit. With the continuous advancement of exploration and production processes at Gold Ridge mine, the company will gradually enter a new stage focusing on gold mining and processing as its main business.