PLACING OF NEW SHARES UNDER GENERAL MANDATE

PLACING OF NEW SHARES UNDER GENERAL MANDATE

The Board announced that on 14 November 2016, after trading hours, the Company entered into the Placing Agreement with the Placing Agent pursuant to which the Company appointed the Placing Agent as its agent to procure placee(s) who is(are) Independent Third Party(ies) to subscribe 240,000,000 Placing Shares at a price of HK$2.0 per Placing Share on a best effort basis on the terms and subject to the condition of the Placing Agreement. The Placing Agent has procured one Placee (China Tian Yuan Manganese) to subscribe 240,000,000 Placing Shares at the Placing Price. The 240,000,000 Placing Shares represents (i) approximately 20.0% of the existing issued share capital of the Company of 1,200,000,000 Shares as at the date of this announcement; and (ii) approximately 16.7% of the issued share capital of the Company of 1,440,000,000 Shares as enlarged by the allotment and issue of the Placing Shares. Assuming that all the Placing Shares are fully placed, the maximum gross proceeds from the Placing will be approximately HK$480.0 million. It is expected that the net proceeds from the Placing (after deducting the placing commission payable to the Placing Agent and other expenses incurred in the Placing) will amount to approximately HK$477.6 million. The Company intends to apply the net proceeds from the Placing for the Group’s general working capital, repayment of the Group’s indebtedness and the Group’s other potential investments in the future.