HK Stock Market Move | GUIXIN GROUP (08349) rose nearly 20% against the market, planning to acquire a mining company with a potential reserve of 10,000 tons of gold.

GUIXIN GROUP (08349) rose nearly 20% against the market, with an increase of 19.68% at the time of publication, reaching HK$2.25 with a turnover of HK$5.3129 million. On the news front, recently, GUIXIN GROUP announced that the company is in the process of a possible acquisition of a target company. The target company has been granted exploration licenses for three mining areas (SOMANGUINA, PASGANPA, and YELEMBASSE) by the government of Burkina Faso. Among them, the SOMANGUINA project is considered to have a large potential, with estimated inferred resources of 12 tons, with a surface exposure of 45 tons, and previous drilling work recorded high grades of 744 grams per ton. According to a preliminary research report, Burkina Faso is rich in mineral resources, especially in the Birimian zone, where estimated potential reserves of gold mines could reach 10,000 tons. The target company speculates that the mineral valuation is not less than HK$1.5 trillion and will hire an international valuation agency for further evaluation in the future. In addition, this transaction still requires necessary approvals from relevant regulatory authorities, including the consent of the government of Burkina Faso. Shareholders and investors should note that no formal agreement has been signed yet, and the completion of the possible acquisition is not certain.