Sichuan Hongda proposes phased investment in Duolong copper-gold project

Sichuan Hongda Co., Ltd. plans a phased investment of RMB 15,853.00 million into its associate, Tibet Hongda Duolong Mining Co., Ltd. This investment, alongside Sichuan Hongda (Group) Co., Ltd.'s contribution of RMB 19,147.00 million, totals RMB 36,990.50 million. The funds will be allocated to early-stage project expenses and ongoing development of the Duolong copper-gold mine in Tibet. Post-investment, Sichuan Hongda's stake in Duolong Mining will remain 30%. The investment is subject to shareholder approval.

The transaction is deemed a related party transaction since Sichuan Hongda (Group) Co., Ltd. is a controlled entity of Sichuan Hongda’s controlling shareholder, Shu Dao Investment Group Co., Ltd. All necessary internal approvals, including by independent directors, the strategic committee, and the board of directors, have been obtained, with relevant related parties abstaining from voting. The investment will be presented for shareholder approval at the Sixth Extraordinary General Meeting of 2025, scheduled for September 29, 2025.

Duolong Mining, established in 2014, holds two exploration rights in Tibet. The Duolong copper mine is transitioning to an "exploration-to-mining" phase, with progress in environmental impact assessments, beneficiation tests, and infrastructure studies. The investment aims to accelerate the project’s development, ensuring timely funding to potentially convert the substantial resources into economic value.