HONG KONG, July 27, 2021 /PRNewswire/ -- China Natural
Resources, Inc. (NASDAQ: CHNR) (the "Company") announced today that
it has agreed to acquire Precise Space-Time Technology Limited
("Precise Space-Time Technology") for consideration of
approximately 104.1 million Chinese Yuan (US$16.1 million), which is a 20% discount to the
value of Precise Space-Time Technology as determined by an
independent valuation firm. The consideration will be
comprised of 120 million shares of Feishang Anthracite Resources
Limited (HK: 1738) held by the Company (based on the average
closing price of Feishang Anthracite Resources Limited over the
five trading days before July 27,
2021, and discounted for lack of marketability according to
an independent valuation report); (ii) three million restricted
shares of the Company (based on the average closing price of the
Company over the five trading days before July 27, 2021); and (iii) cash.
Precise Space-Time Technology, through its wholly owned
subsidiaries, owns a 51% equity interest in Shanghai Onway
Environmental Co., Ltd. ("Shanghai Onway"). Shanghai Onway is
principally engaged in the provision of equipment for rural
wastewater treatment and the provision of engineering, procurement
and construction services in relation to wastewater treatment in
China.
The Company is currently principally engaged in the exploration
for lead, silver and other metals in the Moruogu Tong Mine, located
in the Inner Mongolia Autonomous Region of China, but has been exploring attractive
opportunities in various sectors, including the healthcare sector
in China. The Company operates as
a socially responsible mining corporation and is committed to
minimizing the impact of its operations on the environment, and to
improving the health and wellbeing of the local communities near
its mine.
Mr. Wong Wah On Edward, Chairman
of the Company, said, "The rural sewage treatment industry is
undergoing a period of rapid development. We believe that in
addition to providing compelling synergies with our current
operations, this is itself a profitable business to enter with
promising returns for our shareholders. Through the
acquisition of Precise Space-Time Technology, we are entering the
attractive environmental protection business, which we believe will
further strengthen our long-term growth opportunities. We
expect to directly benefit from the Precise Space-Time Technology
team's experience, supply chain and customer relationships and
valuable market insights. We believe that demand for
comprehensive environmental protection solutions is on a sustained
growth trajectory given the global need for more effective
environmental solutions."
Mr. Wong continued, "We believe Precise Space-Time Technology's
business is highly synergistic with our strategic business
objectives in the mining and healthcare sectors. We are excited
about the possibilities of leveraging Shanghai Onway to effectively
reduce environmental impacts and preserve local water quality
standards during mining operations. We have also discovered a huge
gap in China's rural sewage
treatment rate compared to urban sewage. We believe we can help
close that gap by constructing sewage treatment facilities in the
local villages where our mining operations are located. We are
committed to corporate social responsibility and to improving
relations with the local communities in which we operate, which
will in turn benefit our mining operations in the long term. The
preservation of the health and wellbeing of local residents through
achievements in environmental protection and water quality
preservation is also in line with our intention to enter the
healthcare sector in China."
About China Natural Resources:
China Natural
Resources, Inc. (NASDAQ: CHNR) is currently engaged in the
acquisition and exploitation of mining rights in Inner Mongolia,
including exploring for lead, silver and other nonferrous metal,
and is actively exploring business opportunities in the healthcare
and other non-natural resource sectors.
Forward-Looking Statements:
This press release
includes forward-looking statements within the meaning of the U.S.
federal securities laws. These statements include, without
limitation, statements regarding the intent, belief and current
expectations of the Company, its directors or its officers with
respect to: the potential presented by the healthcare and
wastewater treatment sectors in the
People's Republic of China (the "PRC") and other industry
sectors in the PRC generally; the impact on the Company's
financial position, growth potential and business of an investment
in the wastewater treatment sector of the PRC generally and in
Precise Space-Time Technology and Shanghai Onway specifically; the
experience, supply chain and customer relationships and market
insights of the Precise Space-Time Technology team; the growth
potential of the wastewater treatment and environmental protection
industries in the PRC; the impact on the Company's financial
position of an investment in the healthcare sector of the
PRC; and the Company's ability to locate and execute on
strategic opportunities. Forward-looking statements are not a
guarantee of future performance and involve risks and
uncertainties, and actual results may differ materially from those
in the forward-looking statement as a result of various factors.
Among the risks and uncertainties that could cause the Company's
actual results to differ from its forward-looking statements are:
possible downturns in the healthcare or wastewater treatment
sectors in the PRC or other sectors that the Company may invest in;
the results of the next assessment by the Staff of the Nasdaq
Listing Qualifications department of the Company's compliance with
the Nasdaq Listing Rules; uncertainties related to governmental,
economic and political circumstances in the PRC; uncertainties
related to metal price volatility; uncertainties related to the
Company's ability to fund operations; uncertainties related to
possible future increases in operating expenses, including costs of
labor and materials; uncertainties related to the impact of the
COVID-19 pandemic; uncertainties related to the political situation
between the PRC and the United
States, and potential negative impacts on companies with
operations in the PRC that are listed on exchanges in the United States; and other risks detailed
from time to time in the Company's filings with the U.S. Securities
and Exchange Commission. When, in any forward-looking statement,
the Company, or its management, expresses an expectation or belief
as to future results, that expectation or belief is expressed in
good faith and is believed to have a reasonable basis, but there
can be no assurance that the stated expectation or belief will
result or be achieved or accomplished. Except as required by law,
the Company undertakes no obligation to update any forward-looking
statements.
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SOURCE China Natural Resources, Inc.