Baiyin Nonferrous Group (601212.SH) plans to acquire the Brazilian Serrote project for 420 million US dollars, with copper metal resources increasing to approximately 930,000 tons.

Baiyin Nonferrous Group (601212.SH) announced that the company plans to acquire 100% equity of Serrote company through its wholly-owned subsidiary Baiyin Precious Metals Investment Co., Ltd., indirectly owning 100% equity of MVV, the Brazilian Serrote copper mine project company. At the same time, the company will acquire 100% equity of AMH2 (referred to as the "target company" together with "Serrote company"), and repay the target company's external loans. The transaction price for this acquisition is $420 million, and the company will also provide $10 million in working capital for project operation. It is reported that the Serrote mine project started construction in 2019, commenced production in June 2021, reached full production in September 2022, and entered a stable production period. The historical capital expenditure is approximately $230 million. The project is designed with a mining scale of 4.1 million tons per year, producing an average of 19,000 tons of copper concentrate and 7,300 ounces of gold annually. In 2023, the actual production of copper concentrate is 25,700 tons and gold is 11,800 ounces. After the completion of this transaction, the company will own the Serrote copper mine project in Brazil, and the copper metal resource reserves will increase from 221,700 tons to approximately 930,000 tons, significantly improving the resource reserves and security level. In addition, the project has already started production, which will enhance the company's profitability, elevate its international operation level, and broaden its layout of non-ferrous metal resources in South America.