Zijin Mining Group (02899) plans to acquire 24.82% equity of Zangge Mining for 13.729 billion yuan and obtain controlling rights.

Zijin Mining Group (02899) announced that its wholly-owned subsidiary, Zijin International Holdings, signed a Control Transfer Agreement for Zangge Mining Company Limited with Zangge Chuangtou, Sichuan Yonghong, Lin Jifang, and Xinsha Hongyun on January 16, 2025. Zijin International Holdings intends to acquire a total of 3.92 billion shares of Zangge Mining held by the aforementioned parties at a price of RMB 35 per share, representing a 24.82% equity stake, with a total transaction amount of RMB 13.729 billion. Prior to this transaction, the company held a 0.18% stake in Zangge Mining through its wholly-owned subsidiary. After this transaction is completed, the company's overall stake will reach 25%. Zangge Chuangtou, Sichuan Yonghong, Lin Jifang, and the concerted action parties will collectively hold a 20% stake, while Xinsha Hongyun's stake will decrease to 9.89%. Based on the share transfer and the governance structure arrangements for Zangge Mining after the transaction, Zijin International Holdings will gain control of Zangge Mining and consolidate its financial statements. Zangge Chuangtou and Xinsha Hongyun have made commitments not to seek control rights or voting rights matter. Zangge Mining's core assets include 100% equity in the Cha'erhan Salt Lake project in Qinghai, 70% equity in the Banbaw Mining Area Potash Project in Vientiane, Laos, 24.01% equity in the Mamichu Salt Lake in Tibet, 21.09% equity in the Longmu Salt Lake and Jiezekacha Salt Lake in Tibet, and 30.78% equity in the Julong Copper Mine in Tibet. The company's main business is the operation, production, smelting, and sales of gold and other mineral resources. If the transaction is completed, it will significantly enhance the company's main metal varieties such as copper and lithium resources, achieve absolute control of the Julong Copper Mine, and efficiently synergize with Zangge Mining's Tibet Plateau salt lake projects, improving the company's industrial layout. This acquisition is of significant strategic importance for the company's future development. Therefore, the directors, including independent non-executive directors, believe that the terms of the transaction are reached in accordance with fairness principles and in the best interest of the company and shareholders, and are made in accordance with general commercial terms and the company's normal business operations.