Chengtun Mining to acquire 30% stake in overseas copper-cobalt mining rights

Chengtun Mining Group Co., Ltd. has announced plans to acquire a partial interest in overseas copper-cobalt mining rights through an equity transaction.

The company's wholly owned subsidiary, Hongsheng International Resources Co., Ltd., together with Preeminence Holdings Limited, has entered into an agreement with Novel Mining and Services Limited and its wholly-owned subsidiary Nkoyi Leopard Mining and Investment Limited, which is incorporated in the Emirate of Abu Dhabi, UAE.

Under the agreement, Preeminence will acquire a 50% equity stake in Nkoyi for USD300 million. Upon completion of the transaction, Chengtun Mining will indirectly hold a 30% interest in the mining rights of a designated copper-cobalt project in the Democratic Republic of the Congo. Nkoyi will become an associate of Chengtun Mining and will not be consolidated into its financial statements.

The mining license for the target project is valid until January 13, 2040, covering copper and cobalt resources. The project is currently at a pre-production stage. Based on drilling data, the copper ore grade is estimated at 1.66%, with an associated cobalt grade of 0.67%.

The project's copper resource base is expected to significantly exceed the threshold for large-scale deposits by Chinese standards. It also hosts substantial associated cobalt resources and offers considerable potential for further resource expansion.