Chengtun Mining Group(600711.SH) subsidiary company intends to acquire 50% of Nkoyi's equity for $300 million.

Chengtun Mining Group (600711.SH) announced that its wholly-owned subsidiary, Hongsheng G-RESOURCES Limited and Preeminence, recently signed an agreement with NovelMining, a company based in Abu Dhabi, United Arab Emirates, and its wholly-owned subsidiary Nkoyi. Preeminence plans to acquire a 50% stake in Nkoyi for $300 million in order to ultimately obtain a 30% interest in specific copper and cobalt mining rights indirectly held by Nkoyi. After the completion of this transaction, Nkoyi will become a subsidiary of the company but will not be included in the company's consolidated financial statements. The company anticipates that if the mine enters the construction phase, both parties will need to jointly bear significant investment costs, with the specific amount to be determined based on professional reports at the time. The province of Lualaba in the Democratic Republic of Congo is where the company's copper and cobalt mining and smelting capacity are located, and it is an important source of revenue and profit for the company. In recent years, it has become increasingly difficult to acquire overseas copper and cobalt resources, especially large-scale mineral resources. This transaction aligns with the company's resource-oriented and international development strategy, and it will help increase the company's mineral resource reserves, as well as provide long-term and stable raw material security for the company's existing smelting and processing business in the region, enhancing the company's ability to withstand resource price fluctuations and supply chain risks in the industry.