CHI SILVER GP (00815) fell more than 3% in early trading, with a decline of 1.52% at the time of writing, trading at HK$0.65 and recording a turnover of HK$8.919 million.
The drop follows an announcement by CHI SILVER GP that EVEREST GOLD (01815) intends to place 248 million shares at a 19.50% discount, raising approximately HK$398 million in net proceeds. The funds will primarily be allocated to exploration and survey expenses for the Shannan and Shigatse mines in Tibet, with the remaining 20% reserved for working capital. The move aims to enhance raw material self-sufficiency amid rising gold prices and increasing resource development demand.
Currently, CHI SILVER GP holds about 40.39% of EVEREST GOLD's shares, which will dilute to approximately 33.66% post-placement. This dilution constitutes a deemed disposal for CHI SILVER GP, meaning EVEREST GOLD's financial performance will no longer be consolidated into CHI SILVER GP's financial statements.
CHI SILVER GP expects to recognize a gain of around HK$298 million from the transaction.
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