Shengda Resources secures financing, starts mine trial production

Shengda Resources has finalized a RMB150m financing lease for its controlled subsidiaries, Hunan Jinye Environmental Protection Technology Co. and Inner Mongolia Jinshan Mining Co. The lease, provided by Shanghai Xinhua Financial Leasing Co., involves Jinye Environmental's production equipment in a sale-leaseback arrangement over 36 months, with Shengda Resources providing a joint and several liability guarantee. Jinye Environmental's minority shareholders will offer equity pledge counter-guarantees.

This financing is within the previously approved 2025 financing and guarantee limits of RMB6bn. Post-transaction, the company's total guarantee balance is RMB2.414bn, or 79.33% of its net assets. The financing aims to support working capital needs for Jinye Environmental and Jinshan Mining's operations.

Concurrently, Shengda Resources' controlled subsidiary, Sichuan Honglin Mining Co., has received approval to commence trial production at its Caiyuanzi Copper-Gold Mine for three months, from September 10 to December 10, 2025. This step is expected to advance Honglin Mining towards full production, potentially boosting the company's gold output and core competitiveness, pending the issuance of a safety production license.