Shengda Resources (000603.SZ) plans to acquire no less than 58% equity interest in Fangxin Mining through equity transfer and capital increase.

Shengda Resources (000603.SZ) announced that the company plans to acquire no less than 58% equity interest in Funing County Fangxin Gold Mining Co., Ltd. ("Fangxin Mining" or the "Target Company") through a combination of equity transfer and capital increase. Upon completion of this transaction, Fangxin Mining will become a controlled subsidiary of the company. The investment matter set forth in this framework agreement aligns with the company's strategic planning and will enable the company, leveraging Yunnan's nonferrous metal resource endowments, to enter the Carlin-type gold mineralization belt of the Yunnan-Guizhou-Guangxi "Golden Triangle" (Youjiang Basin) following its acquisitions of the Caiyuanzi copper-gold mine of Sichuan Honglin Mining Co., Ltd. and the Miaohuang copper-lead-zinc-silver mine of Guangxi Laibin Jinshi Mining Co., Ltd., further broadening the company's industrial footprint in Southwest China, expanding its mineral resource portfolio, consolidating its resource base, and enhancing its resource security capabilities. Upon completion of this transaction, it will help increase the company's gold mineral resource reserves and strengthen its market competitiveness and sustainable development capacity.