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To Extend the Industrial Chain to Non-ferrous Metals,
Precious Metals Mining and Development industry
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HONG KONG, Aug 31, 2020 - (ACN Newswire) - Pizu Group Holdings Limited ("Pizu Group" or the "Company", together with its subsidiaries, collectively referred as the "Group"; Stock Code: 8053.HK), which is a company mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities, announced the details of the proposed capital injection to Anhui Jinding Mining Co., Ltd ("Jinding Mining") through its wholly subsidiary Pizu (Shenzhen) Mining Limited ("Pizu Shenzhen").
Jinding Mining is a company engaged in the mining and processing of gold, copper and iron polymetallic ore and the sale of these mineral products. On 29 June 2020, the Group signed a capital injection and co-operation agreement with Jinding Mining through Pizu Shenzhen. Under the capital injection and cooperation agreement, Pizu Shenzhen has agreed to inject a total of RMB270 million in cash into Jinding Mining's capital, of which RMB191,399,347 and RMB78,600,653 will be recognized as registered capital and capital reserves of the target company, respectively. The Group intends to fund the proposed capital injection with its internal resources. Within the completion of the capital injection, Jinding Mining's registered capital will be increased to RMB375,292,836 and will be owned by Pizu Shenzhen or another wholly subsidiary of Pizu Group, with the remaining 49% owned by Jinding Mining's existing shareholders.
By taking this opportunity, the Group hopes to extend its industrial chain to the non-ferrous metals and precious metal mining and development industry, so as to promote the diversification of the Group's business and drive the long-term sustainable development of the Group. Jinding Mining owns considerable reserves of gold, copper, pyrite and iron ore. Among them, the total mineral reserves of gold are about 22.8 tons, including 12.9 tons identified under the mining license and 9.9 tons identified under the exploration license; while the total mineral reserves of copper are about 62.4 thousand tons, including 47 thousand tons identified under the mining license and 15.4 thousand tons identified under the exploration license. The Group is confident that Jinding Mining will generate favourable returns to the Group when it commences production.
"The acquisition of Jinding Mining is in line with the Group's core development strategy and makes the Group's business more diversified," said the management of Pizu Group. "Jinding Mining's mineral resources are of good quality and are expected to commence production in the near future, which is believed to bring significant contribution to the Group's revenue. In addition, the mineral resources of Jinding Mining are mainly composed of gold and copper. In view of the financial environment in the next decade, we are optimistic about the future prices of mineral resources, especially gold. Therefore, we are confident that the acquisition of Jinding Mining will lead the Group to a new peak, helping it to achieve stable performance in the current challenging environment and create long-term value for the Group's shareholders."
About Pizu Group Holdings Limited
Pizu Group Holdings Limited (Pizu Group) is mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities.
The Group has civil explosive production companies, business companies, blasting operation companies and distribution to blasting operation. The Company is one of the few companies which have both explosive production qualification and blasting operation qualification, is in the industry-leading position and also the only listed company on Hong Kong GEM which is engaged in civil explosive industry.With the gradual development of the business, the Group's turnover and net profit have achieved a multiplier growth in the recent years.
Topic: Press release summary
Source: Pizu Group Holdings Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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