HK Stock Market Move | TONGGUAN GOLD (00340) rose over 20% in intraday trading, planning to acquire 100% equity of Rongchang Investment Limited for not more than HK$400 million.

TONGGUAN GOLD (00340) rose more than 20% intraday, rising 18.33% at the time of writing to HK$0.71 with a trading volume of HK$3.0236 million. In terms of news, TONGGUAN GOLD announced that on March 7, 2025, its wholly-owned subsidiary Hongyong Investment Limited intends to acquire 100% of the issued share capital of Rongchang Investment Limited from Haohua Holdings Limited for a consideration not exceeding HK$400 million, to be paid by issuing consideration shares based on a special mandate, at a price of HK$0.5 per consideration share. It is understood that the main asset of the target company is its indirect equity interest in the project company. As of the date of this announcement, the project company is indirectly wholly-owned by the target company. The target group is mainly engaged in mining investment business, particularly focusing on gold mining exploration investments. As of the date of this announcement, the target company holds 70% of the economic interests in the mining license through the project company under a cooperation agreement. The gold mine is located in Subei County, Gansu Province, China, and consists of three mining licenses covering a total area of 35.5 square kilometers.