SHENZHEN, Jan. 13 -- Yunnan Tin Co Ltd<000960>, a producer of tin and other nonferrous metals, today announced that it will issue 2.4 shares for every ten shares to existing shareholders to raise around RMB 1.4 billion, according to a statement filed with the Shenzhen Stock Exchange.
The issue price will be RMB 8.98 per share, a price 74% lower than RMB 35.1, yesterday's closing price.
The listed company will release the result of the issuance on Jan. 27.
The proceeds from the issuance will be used to develop four projects: a tin producing project with a daily output of 1,500 tons, a tin processing project, a tin smelting project with an annual capacity of 70,000 tons and a lead smelting expansion project.
The lead project's annual output is expected to increase to 100,000 tons from 20,000 tons.
Reportedly, a subsidiary of Yunnan Tin located in Chenzhou, Hunan Province originally planned to apply for a loan of RMB 50 million from Bank of China<601988><3988>, but ultimately decided to apply to China Minsheng Banking<600016> instead.