en.Wedoany.com Reported - On the evening of April 7, China's ShengTun Mining announced that its wholly-owned subsidiary Hongsheng International and Preeminence have signed an agreement with NovelMining and others. Preeminence intends to acquire a 50% stake in Nkoyi company for $300 million. Upon completion of the transaction, ShengTun Mining will indirectly hold a 30% interest in the mining rights of a copper-cobalt mine in the Democratic Republic of the Congo (DRC) through Nkoyi. This acquisition aims to provide long-term raw material supply for the company's existing smelting capacity in the DRC and increase its mineral resource reserves.
A wholly-owned subsidiary of Nkoyi has signed a joint venture agreement for the mining rights of a specific copper-cobalt mine located in the DRC, holding a 60% interest in these mining rights. After ShengTun Mining acquires a 50% stake in Nkoyi, it will effectively hold a 30% interest in the mining rights. The mining rights are located in the core area of the Central African Copper-Cobalt Belt, in the western suburbs of Kolwezi, covering an area of 10.922 square kilometers. The mining rights are valid from November 18, 2025, to January 13, 2040, for the extraction of copper and cobalt. Production has not yet commenced.
The transportation conditions for the mining area are clear: it is 20 kilometers north of the smelting plants of ShengTun Mining's subsidiaries CCR and CCM, and 51 kilometers southwest of the KMSA smelting plant, with accessible roads. This geographical location provides favorable conditions for subsequent ore transportation and smelting support.
According to estimates by ShengTun Mining's technical experts based on drilling data, the copper grade is 1.66%, with an associated cobalt grade of 0.67%. The company expects to primarily use open-pit mining in the future. According to the agreement, the parties will negotiate a binding agreement as soon as possible after signing to promote mineral processing and sales arrangements. Subject to the signing of the binding agreement, approval of construction and operational arrangements by shareholders, and the absence of significant adverse impacts from regulatory policies, community relations, infrastructure, and logistics, the company anticipates an 18-month infrastructure construction period for mining and processing, with a 24-month ramp-up period to full production. ShengTun Mining and NovelMining will jointly bear the investment costs for mining and processing construction in proportion to their equity stakes.
The signing of the equity acquisition agreement marks the project's transition from the resource acquisition phase to the construction preparation phase. Key subsequent milestones include: signing the binding agreement, completing construction investment arrangements, commencing the 18-month infrastructure period, and achieving the 24-month full production target. The mining rights are currently undeveloped, and the project is in the preliminary permitting and agreement refinement stage.
This transaction does not constitute a connected transaction or a major asset reorganization. It has been approved by the board of directors and does not require submission to the shareholders' meeting. Funding will come from the company's own funds and self-raised funds, with payments made in installments. The transaction is still subject to several preconditions, including signing a binding agreement, obtaining shareholder approval, and meeting regulatory policies and community relations requirements. ShengTun Mining emphasizes that mine construction involves long cycles and significant investment, with risks including discrepancies in resource reserves, insufficient funding, exchange rate fluctuations, and changes in market prices.
After the agreement is signed, the transaction enters a phase where preconditions must be met, and completion has not yet occurred. The next step requires waiting for the signing of the binding agreement and shareholder approval before substantive construction can begin.
Recently, the company disclosed its performance forecast for the first quarter of 2026, expecting net profit attributable to the parent company to be between 950 million yuan and 1.15 billion yuan, a year-on-year increase of 226% to 295%. This is mainly attributed to increased production from its copper-cobalt projects in the DRC and high copper prices.
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