Largest private placement in history! Sinomine Resource invests heavily 5.2 billion in the mining sector

On the evening of May 19, Sinomine Resource (002738.SZ) disclosed the prospectus for the 2026 issuance of A-shares to specific objects, planning to raise a total of no more than 5.2 billion yuan, the largest private placement since the company's listing. The funds will be primarily directed to three core projects: Zimbabwe lithium sulfate, Zambia copper mine, and Jiangxi cesium-rubidium products, as well as to supplement working capital.

Use of Proceeds: Three Projects + Working Capital, Total Investment Over 8.2 Billion

According to the prospectus, after deducting issuance expenses, the specific use of the raised funds is as follows:

· Zimbabwe Annual Production of 100,000 Tons Lithium Sulfate Project: Total investment of about 1.966 billion yuan, with planned raised fund investment of 1.6 billion yuan;

· Zambia Central Province Kitumba Copper Mine Project: Total investment of about 4.161 billion yuan, with planned raised fund investment of 1.7 billion yuan;

· Jiangxi Sinomine Advanced Materials Annual Production of 2,000 Tons Cesium-Rubidium Products Project: Total investment of about 695 million yuan, with planned raised fund investment of 450 million yuan;

· Supplement working capital: 1.45 billion yuan.

The total investment for the above projects is approximately 8.272 billion yuan. Any shortfall not covered by the raised funds will be resolved by the company's self-financing.

Project Logic: Deepening Resource Advantages, Perfecting Full-Chain Layout

1. Zimbabwe Lithium Sulfate Project: Leveraging High-Quality Lithium Mines to Improve Resource Utilization

This project relies on the Bikita lithium mine in Zimbabwe acquired by the company in 2021. The mine has a cumulative identified ore resource of approximately 141 million tons and 3.4341 million tons of lithium carbonate equivalent (LCE), boasting excellent resource endowments. The plan involves building an annual production capacity of 100,000 tons of lithium sulfate smelting at the mine site, reducing the feed grade from 5.5% to 3.0%. This will significantly improve the utilization rate of low-grade resources, construct an integrated "mining, beneficiation, and smelting" lithium industry chain, reduce transportation costs, and strengthen self-sufficiency in lithium salts.

2. Zambia Kitumba Copper Mine Project: Increasing Copper Investment, Perfecting Multi-Metal Layout

This project is a core capacity implementation step following the company's acquisition of a 65% stake in the Kitumba copper mine in 2024. It is designed to process 3.5 million tons of raw ore annually, with an annual production of 33,000 tons of copper cathode and 55,000 tons of copper concentrate upon reaching full capacity. This move marks the company's formal inclusion of copper into its core resource map, transforming from a single lithium and cesium-rubidium resource merchant into a multi-metal platform mining enterprise covering lithium + copper + rare metals.

3. Jiangxi Cesium-Rubidium Project: Consolidating Global Leadership Position, Positioning for Strategic New Materials

The company is currently a global leader in the cesium-rubidium industry. This Jiangxi project will increase the existing cesium-rubidium salt capacity from 1,500 tons/year to 3,500 tons/year. Resource security is ample: the company's Canadian Tanco mine holds 53,000 tons of cesium oxide metal, and the Zimbabwe Bikita mine is associated with abundant pollucite resources, making it one of the world's three traditional economically mineable cesium sources. Cesium-rubidium products are widely used in high-end fields such as aerospace, 6G communications, and quantum navigation. With demand continuously expanding, the expansion will further consolidate the company's industry barriers.

Issuance Plan: Pricing and Lock-up Period Defined, Subject to Multiple Approvals

The number of shares issued in this private placement shall not exceed 216 million shares (not exceeding 30% of the total share capital before issuance). The issuance objects are no more than 35 specific investors. The issue price shall not be less than 80% of the average trading price of the company's stock over the 20 trading days prior to the pricing benchmark date, and the final price will be determined through bidding; the subscribed shares shall not be transferred within six months from the date of completion of the issuance.

Currently, this private placement has been approved by the company's board of directors and requires approval by the shareholders' general meeting, review by the Shenzhen Stock Exchange, and registration with the China Securities Regulatory Commission before it can be implemented.

Strategic Significance: Seizing Cyclical Opportunities, Opening Up Growth Space

The company stated that this private placement aims to seize the boom cycles and structural opportunities of the three major tracks of lithium, copper, and cesium-rubidium. On one hand, it strengthens resource self-sufficiency and capacity expansion for lithium salts and copper mines; on the other hand, it positions the company in the high-growth track of cesium-rubidium new materials. Through this fundraising, the company will further consolidate resource barriers, optimize the industrial structure, enhance global operations and risk resistance capabilities, and inject strong momentum for long-term high-quality development.