I maybe wrong but I guess that's new, from Future plans
In the event that none of the due diligence results of the acquisition target
selected from such lists meet our expectation, we will consider other companies in the Shandong Province as well as outside the Shandong Province, such as Yunan, Sichuan and Gansu, that fulfil certain of the abovementioned selection criteria, as the alternative plans. As
at the Latest Practicable Date, based on the understanding we have obtained so far, we have shortlisted three underground gold mines within the Muping District, Shandong Province that align with our criteria for selective acquisition. Our Directors believe that the expected
timeframe for selective acquisition is feasible primarily because the owners of the shortlisted three new mines, upon enquiry, are fully willing to collaborate and provide all necessary due
diligence information. For details, please refer to the paragraph headed ‘‘Business — Expand
our business and grow our market share through selective acquisitions of gold mining assets
— Feasibility of our acquisition plan’’ in this document.
We intend to, through our indirect wholly-owned subsidiary in Hong Kong, establish a new
sino-foreign joint venture entity in the PRC after the [REDACTED], to acquire a controlling
stake of not less than 51% of the equity interest in a mining asset. A combination of the
[REDACTED] from the [REDACTED] of [REDACTED] and internal resources of the
remaining amount will be used to fund all of our portion of the total initial commitment of
capital contribution of the joint venture entity in the aggregate amount of not less than
RMB300 million. It is intended that the capital contribution will cover, among others, the
acquisition cost for mining licence, the value of the mining asset and additional investment
for construction of additional mining infrastructure. The capital will be contributed by both
parties in stages over a period of two years after the date when the business licence of the
joint venture entity is obtained. If the capital contribution amount is not sufficient to cover
the abovementioned costs or if the new mining asset requires further investment for further
development of mining infrastructure or working capital, we expect the joint venture entity to
obtain external financing from banks and/or further capital contribution from its shareholders.
The table below sets forth the capital contribution to be made out of the [REDACTED] from
the [REDACTED] for the new sino-foreign joint venture entity to be established for acquiring
the new mining asset.