Gelonghui, December 22 | China Jinshi (01380.HK) announced that the company and the seller, Mr. Song Tai, are discussing the company's intention to acquire and the seller's intention to sell no less than 50% of the shares in the target company Sino-South America Trading SPA to jointly develop the gold mine. The total area of the gold mine is about 400 hectares. To facilitate continued negotiations on a possible acquisition, the company and the seller entered into a memorandum of understanding on December 22, 2023.
The Company shall pay goodwill money to the seller within 14 days from the date of the Memorandum of Understanding. If a formal agreement is signed during the exclusive period, the goodwill money will be used to cover part or all of the costs of the possible acquisition.
The directors believe that the possible acquisition and the Pumillahue project are a good opportunity for the Group to enter the Chilean gold mining industry and provide the company with the potential to promote future development and strengthen its revenue base. The memorandum of understanding allows the Group to conduct further due diligence on the viability of the Pumillahue project, including but not limited to gold exploration.