Hong Kong-listed North Mining Shares Co. Ltd. entered a memorandum of understanding for the subscription of more than 30% of its shares by two potential investors for HK$400 million.
The company holds molybdenum and potash assets, including an interest in the Kuang Ye molybdenum mine in Shaanxi province, and also engages in property management, chemical trading and security technologies.
North Mining Shares said in August that molybdenum concentrate production in the first half of 2019 totaled 1,977 tonnes, increasing year over year from 1,461 tonnes.
SFund International agreed to subscribe for HK$350 million in shares, to be paid through the settlement of bonds worth HK$250 million and HK$100 million in cash. Executive Director Qian Yi Dong also agreed to subscribe for HK$50 million in shares, which is expected to be paid in cash.
Completion remains subject to a formal agreement and the granting of a whitewash waiver during a special shareholders meeting.
