Tibet Mining plans to increase fundraising 514 million
Tibet Mining has announced a non-public offering plan on the evening of the 27th, aiming to raise up to 514 million yuan in order to acquire high-quality chromite ore assets from its major shareholder, Tibet Mining Corporation. This move is part of the company’s commitment to inject chromite resources into its listed entity, thereby avoiding internal competition within the industry. The transaction is expected to strengthen the company's resource base and support long-term growth.
Under the private placement, Tibet Mining will issue 49.1557 million shares to key shareholders, including Tibet Autonomous Region Mining Development Corporation, Chengdu Tianqi Industry (Group) Co., Ltd., and Tibet Autonomous Region Investment Co., Ltd., at a price of 10.45 yuan per share. A total of 514 million yuan is expected to be raised through this initiative. Specifically, the company has already acquired 204.746 million shares from the Mining Corporation and paid 100 million yuan in cash to secure 0.702 square kilometers of mining rights in the southern Luobusa I and II ore clusters. Additionally, 200 million yuan is allocated for a chromite mining project in the same area.
Currently, the company's chromite mine produces 60,000 tons annually. Once this new investment is completed, production capacity is set to increase to 160,000 tons per year, significantly boosting operational efficiency. The project is projected to generate an annual operating income of 250 million yuan, with a net profit of approximately 102.23 million yuan. The after-tax internal rate of return is estimated at 30.14%, and the payback period is expected to be around 5.29 years, making it a highly profitable venture.
Tibet Mining emphasized that this capital-raising initiative will greatly enhance the company's chromite reserves, reduce the risk of resource depletion, and improve the scale and intensity of its chromite mining operations. As a result, the company’s overall sustainability and development potential are expected to see substantial improvements. This strategic move underscores Tibet Mining’s long-term vision and commitment to strengthening its position in the global chromite market.
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