China Hanking (03788) announced that on January 21, 2026, the company proposed to issue and allot a total of 43.96 million subscription shares to four subscribers, namely Zijin Global Fund, Singapore Luyin Trading Co., Ltd., Oriental Gold (Hong Kong) Co., Ltd., and MLHK Vehicle 1 Limited. These shares represent approximately 2.16% of the company's existing issued share capital as of the announcement date, and about 1.96% of the enlarged issued share capital following the allotment and issuance of both the subscription and placement shares. The subscription price is set at HK$3.80 per share, representing a discount of approximately 18.28% to the closing price of HK$4.650 per share on January 21. The gross proceeds from the subscription are expected to be approximately HK$167 million, with net proceeds anticipated to be around HK$165 million.
On January 22, 2026, the company proposed to place up to 162 million new shares, accounting for approximately 7.96% of the existing issued share capital as of the announcement date, and about 7.23% of the enlarged issued share capital after the allotment and issuance of the subscription and placement shares. The placement price is HK$3.80 per share, also an approximate 18.28% discount to the closing price of HK$4.650 per share on January 21. The gross proceeds from the placement are expected to be approximately HK$616 million, with net proceeds estimated to be about HK$607 million.
The issuance of subscription shares and placement shares is being conducted to fund the development of the Mt Bundy gold mine project located in Australia. The combined gross proceeds from the subscription and placement are expected to total approximately HK$783 million. The cumulative net proceeds from these initiatives are projected to be around HK$772 million.
The company plans to utilize the net proceeds from the subscription and placement, along with its own funds, to support the development of the Mt Bundy gold mine project. It is anticipated that all net proceeds will be fully deployed by the end of 2027. To accelerate the advancement of the Mt Bundy gold mine project, work planned for the coming months includes tendering for an EPC contractor for mine construction and the development of camp facilities such as staff dormitories and canteens.
Following the completion of detailed construction drawings and debt financing, construction of the processing plant is scheduled to commence in the second half of 2026, with production targeted to begin in the first quarter of 2028.
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