HONG
KONG, July 28, 2023 /PRNewswire/ -- China
Natural Resources, Inc. (NASDAQ: CHNR) (the "Company") announced
today that it has agreed to sell all outstanding shares of Precise
Space-Time Technology Limited ("Precise Space-Time Technology"
or "PSTT") to Feishang Group
Limited, together with PSTT's outstanding
payable owed to the Company, for consideration of
approximately RMB95,761,119 in cash
(approximately $13.2 million,
the "Base Purchase Price"). The
Base Purchase Price is subject to upward post-closing adjustment
based on the difference between net assets of PSTT as included in
its unaudited consolidated balance sheet as of June 30, 2023 and the base net assets (which is
determined as the higher of RMB-49,074,962, PSTT's consolidated net assets as
of December 31, 2022 and
RMB-34,197,300, the value of
PSTT as determined by the valuation report dated July 28, 2023).
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 valuation of PSTT as of December 31,
2022 as determined by an independent valuation firm on
July 28, 2023 is RMB-34,197,300. The Company acquired all
outstanding shares of PSTT from Mr. LI Feilie for an aggregate
consideration of approximately RMB104.1
million in July 2021.
Mr. Wong Wah On Edward, Chairman
of the Company, said, "The disposition of Shanghai Onway can help
the Company streamline its resources and invest in opportunities
that will help the Company grow."
About China Natural Resources:
China Natural Resources, Inc. (NASDAQ: CHNR) is currently a
holding company that operates in two reportable operating segments:
wastewater treatment and exploration and mining. After the
completion of Precise Space-Time Technology disposition, the
Company will be 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. China Natural Resources recently agreed to
acquire Williams Minerals, which operates a lithium mine in
Zimbabwe, for a maximum
consideration of US$1.75 billion.
Williams Minerals is owned by China Natural Resources' controlling
shareholder, Feishang Group Limited, and a non-affiliate, Top
Pacific (China) Limited. While
there is no guarantee, the acquisition of Williams Minerals is
expected to close in 2023.
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.