Tongling Nonferrous Metals: The Proposed 6.67 Billion Yuan Related Acquisition Of 70% Equity Of CRCC-Tongguan Investment Co. Was Approved

Tongling Nonferrous Metals Group intends to issue shares, convertible corporate bonds and pay cash to purchase a 70% stake in CRCC-Tongguan Investment Co. held by Tongling Nonferrous Metals Group Holding Co., Ltd. The transaction price is 6,673.2509 million yuan. The company plans to issue convertible bonds to no more than 35 specific investors to raise 2.146 billion yuan, which will be used to pay the cash consideration for the underlying assets, the underlying company to repay loans, and pay transaction taxes and intermediary fees.

Tongling Nonferrous Metals introduced that CRCC-Tongguan, the target of this transaction, controls the large-scale copper mine resources of Ecuacorriente in southeastern Ecuador. Among them, the proven and controlled ore resources of Mirador Copper Mine is 1.257 billion mt, with the average copper grade of 0.48%. Copper resources stand at 6.03 million mt with metal content.

This transaction will effectively meet the domestic demand for copper resources, enhance China's ability to control strategic mineral resources, and is in line with the national development strategy.