CHI SILVER GP (00815) plans to issue approximately 388 million subscription shares to capitalize loan capital.

Announcement of CHI SILVER GP (00815) on January 20, 2025, the Company (as issuer), Journey Grace (as subscriber), Shanghai Seagull (as lender), and Jiangxi Long Tianyong (as borrower) have entered into the Journey Grace Subscription Agreement. According to this agreement, the Company has conditionally agreed to issue around 129.5 million new shares to Journey Grace (i.e. Journey Grace Subscription Shares) at a subscription price of HK$0.252 per share, to be paid by offsetting the outstanding principal amount and accrued interest under the Shanghai Seagull loan owed by the indirect wholly-owned subsidiary of the company, Jiangxi Long Tianyong, as of the completion date of the Journey Grace subscription (i.e. capitalization of the Shanghai Seagull loan). On the same day, the Company (as issuer), King Chain (as subscriber), Shanghai Qimao (as lender), and Jiangxi Long Tianyong (as borrower) have entered into the King Chain Subscription Agreement. According to this agreement, King Chain has conditionally agreed to subscribe, and the Company has conditionally agreed to issue around 258.5 million new shares to King Chain (i.e. King Chain Subscription Shares) at a subscription price of HK$0.252 per share, to be paid by offsetting the outstanding principal amount and accrued interest under the Shanghai Qimao loan owed by the indirect wholly-owned subsidiary of the company, Jiangxi Long Tianyong, as of the completion date of the King Chain subscription (i.e. capitalization of the Shanghai Qimao loan). As of the Journey Grace Subscription Agreement date, the outstanding principal amount and accrued interest under the Shanghai Seagull loan is RMB 30,223,416.44 (approximately HK$32,638,267.41). After the completion of the Journey Grace subscription, the outstanding principal amount and accrued interest under the Shanghai Seagull loan should be considered as repaid. As of the King Chain Subscription Agreement date, the outstanding principal amount and accrued interest under the Shanghai Qimao loan is RMB 60,328,767.12 (approximately HK$65,149,035.62). After the completion of the King Chain subscription, the outstanding principal amount and accrued interest under the Shanghai Qimao loan should be considered as repaid.