CHINA HANKING (03788) plans to raise approximately HK$783 million to support the development of the Mt Bundy gold project.

CHINA HANKING (03788) announced that on January 21, 2026, the company plans to issue a total of 43.96 million subscription shares to four subscribers (Zijin Global Fund, Lu Yin Trading Pte. Ltd., Oriental Gold Industry (Hong Kong) Co., Ltd., MLHK Vehicle 1 Limited), accounting for approximately 2.16% of the company's existing issued share capital as of the date of this announcement; and approximately 1.96% of the enlarged issued share capital after the issuance of subscription shares and placement shares. The subscription price is HK$3.80 per share, representing a discount of approximately 18.28% from the closing price of HK$4.650 per share on January 21. The total expected proceeds from the subscription are approximately HK$167 million, with a net amount of approximately HK$165 million. On January 22, 2026, the company plans to place up to 162 million new shares, representing approximately 7.96% of the company's existing issued share capital as of the date of this announcement, and approximately 7.23% of the enlarged issued share capital after the issuance of subscription shares and placement shares. The placement price is HK$3.80 per share, representing a discount of approximately 18.28% from the closing price of HK$4.650 per share on January 21. The total expected proceeds from the placement are approximately HK$616 million, with a net amount of approximately HK$607 million. The issuance of subscription shares and placement shares is for the development of the Mt Bundy gold mine project in Australia. The total expected proceeds from the subscription and placement amounts to approximately HK$783 million, with a cumulative net amount of approximately HK$772 million. The company plans to use the net proceeds from the subscription and placement, along with its own funds, to support the development of the Mt Bundy gold mine project, with all net proceeds expected to be fully utilized by the end of 2027. To accelerate the Mt Bundy gold mine project, upcoming work in the next few months includes tendering for the construction contractor for the mine, as well as the construction of employee dormitories, canteens, and other camp facilities. Construction of the plant is expected to commence in the second half of 2026 after completion of the construction drawings and debt financing, with production expected to begin in the first quarter of 2028.