CHINFMINING (01258) plans to gradually acquire a controlling stake in Kazakh copper company SM Minerals.

CHINFMINING (01258) announced on November 20, 2024, January 24, 2025, and April 25, 2025, the company, SM Minerals, and AM shareholders entered into a preliminary agreement to transfer 5,265 shares of SM Minerals (5% of SM Minerals' issued share capital) for a price of $5 million. On June 16, 2025, SM Minerals and AM shareholders entered into a subscription agreement, whereby SM Minerals agreed to issue and distribute shares and the company agreed to subscribe for the shares at the subscription price. The company adopted a share subscription method to pay the subscription price and acquire 10.5% of the issued share capital of SM Minerals, with the subscription price primarily used for technical exploration and development work on the Kalra Mining Project. This strategy not only helps reduce investment risks but also effectively utilizes the resources and expertise of SM Minerals. According to the subscription agreement, the company, SM Minerals, and AM shareholders agreed to make their best efforts to cooperate in good faith, aiming to negotiate and finalize a definitive agreement, including but not limited to entering into an option agreement with the original shareholders for the purchase of a total of 65% of the then issued SM Minerals shares before the deadline. SM Minerals is registered in the Astana International Financial Center (AIFC) in Kazakhstan, with assets including mining rights in Kalra North and exploration rights in Kalra South through its subsidiary. The copper deposit in Kalra North is estimated to be approximately 1.5 million tons of copper metal, providing sufficient resources for large-scale mining operations. This project provides a valuable opportunity for the group to expand its business into the Kazakh copper mining industry. This strategic investment not only enhances the group's mineral resource portfolio but also strengthens its overall market position and competitiveness. Through cooperation with SM Minerals, the additional copper resources will play a crucial role in optimizing the group's resource strategy and driving future growth, making this investment a key step in the group's long-term development plan. By signing preliminary and subscription agreements, as well as agreeing to subscription option terms in the future, the goal of controlling SM Minerals will be achieved.