Tibet Mining plans to increase fundraising 514 million

Tibet Mining issued a non-public issuance plan on the evening of the 27th and plans to raise capital by 500 million yuan in order to purchase the high-quality chromite ore assets of the major shareholder Tibet Mining Corporation. This transaction is also a commitment of the mining company to fulfill the goal of injecting chromite resources into listed companies to avoid competition with the industry.

According to the fixed-income plan, Tibet Mining intends to issue a total of 49.1557 million shares to the company’s controlling shareholder, Tibet Autonomous Region Mining Development Corporation, Chengdu Tianqi Industry (Group) Co., Ltd. and Tibet Autonomous Region Investment Co., Ltd., at a total of RMB 10.45 per share. Not more than 514 million yuan. Among them, Tibet Mining has purchased 204.746 million shares from Mining Corporation and paid cash of 100 million yuan to acquire the 0.702 square kilometers of mining rights that are being processed in the southern chromium ore mines of the Luobusa I and II ore clusters, totaling 314 million yuan; 200 million yuan was used for the chromite ore mining project in the south of the Robusha I and II mines.

It is worth noting that the current production capacity of the company's chromite ore mine is 60,000 tons/year. After the completion of the construction of this investment project, the company's chromite ore mine production capacity will increase to 160,000 tons/year, which will be significant. Improve the company's chromite production capacity. After the project is put into production, it can realize an operating income of RMB 250 million per year in normal years, a net profit of RMB 102,227,300/year, an internal rate of return after tax of 30.14%, and an investment recovery period of 5.29 years after taxation, which is expected to be given to the company. Bring considerable economic benefits.

Tibet Mining stated that through the implementation of this non-public issuance plan, the listed company's chromite reserves will be greatly increased, reducing the risk of depletion of resources, increasing the scale and intensiveness of chromite mining, and the company’s sustainable development. Development capacity has been enhanced.