Hunan Gold has disclosed a restructuring draft, planning to acquire 100% equity in Gold Tianyue and 100% equity in Zhongnan Smelting through share issuance, with a total transaction consideration of 4.334 billion yuan, and also intends to raise matching funds of no more than 1 billion yuan. The 100% equity in Gold Tianyue is valued at approximately 3.502 billion yuan, and the 100% equity in Zhongnan Smelting is valued at approximately 832 million yuan, with the share issuance price for the asset purchase set at 16.76 yuan per share. Gold Tianyue holds five mining rights and six exploration rights in the Wangu mining area, with 2025 operating revenue of about 235 million yuan and net profit of about 50 million yuan. Zhongnan Smelting is mainly engaged in the smelting and processing of high-arsenic, high-sulfur refractory gold concentrates. After the transaction, Hunan Gold will integrate the mining, beneficiation, and smelting segments of the gold resources in the Wangu mining area, further increasing its gold resource reserves. The draft shows that the cumulative net profit commitment for the mining rights assets of Gold Tianyue in the Wangu mining area during the performance commitment period is no less than 2.022 billion yuan if implemented by the end of 2026, or 2.028 billion yuan if implemented in 2027. Previously, the Hunan Provincial Geological Institute announced a major exploration breakthrough in the Wangu gold field, with cumulative proven gold resources of 300.2 tonnes in the core exploration area, and predicted prospective gold reserves exceeding 1,000 tonnes at depths above 3,000 metres.
Hunan Gold Corp LtdHunan Gold plans to acquire Gold Tianyue and Zhongnan Smelting for 4.334 billion yuan, integrating gold resources and increasing reserves.
Zhongnan Smelting is being acquired by Hunan Gold, but the company is not publicly traded and is only mentioned as an acquisition target.