Yunnan Copper expands core business with mine acquisition, secures funding

Yunnan Copper Industry Co., Ltd. announced a major asset acquisition, involving the issuance of shares to purchase 40% of Liangshan Mining Co., Ltd. from Yunnan Copper (Group) Co., Ltd. It will also undertake a concurrent private placement to raise supporting funds of 1.5 bn yuan from Aluminum Corporation of China Limited and China Copper Co., Ltd. This move aims to expand Yunnan Copper's copper resource reserves and enhance its self-sufficiency in raw materials.

The transaction values Liangshan Mining at 600,877.62 million yuan, with the 40% stake priced at 232,351.05 million yuan after deducting an 8,000.00 million yuan cash dividend. The acquisition is deemed a connected transaction and has received preliminary approval from the respective boards and shareholders, with a voluntary lock-up period of 60 months for newly issued shares.

The supporting funds of 1.5 bn yuan will be used to develop Liangshan Mining's Hongnipo copper mine project (75,000.00 million yuan) and supplement Yunnan Copper's working capital (75,000.00 million yuan). This strategic acquisition aligns with national industrial policies encouraging consolidation and high-quality development in the non-ferrous metals sector, strengthening Yunnan Copper's core competitiveness by integrating high-quality copper assets and resolving existing related-party competition. The transaction is not expected to constitute a material asset restructuring or a back-door listing.