China Natural Resources Announces Effective Date of Share Combination

Rhea-AI Summary

China Natural Resources (NASDAQ: CHNR) has announced a 1-for-8 reverse share combination effective June 13, 2025. Every eight existing common shares will be automatically converted into one share, with fractional shares rounded up to the next whole share. The stock will continue trading under CHNR with a new CUSIP number G2110U125. The combination will not alter shareholders' percentage ownership except for fractional share adjustments. All outstanding options, warrants, and rights will be proportionally adjusted. CHNR operates in mining exploration in Inner Mongolia and is working to acquire Williams Minerals, a Zimbabwe lithium mine, for up to $1.75 billion from Feishang Group Limited and Top Pacific (China) Limited.

Positive

• Reverse share combination could help maintain NASDAQ listing requirements
• Potential acquisition of Williams Minerals lithium mine in Zimbabwe valued at $1.75 billion shows growth strategy
• Company maintains mining rights in Inner Mongolia for lead, silver, and other nonferrous metals

Negative

• Reverse share split typically indicates share price weakness
• Significant dilution risk from the $1.75 billion Williams Minerals acquisition
• Heavy concentration in high-risk mining jurisdictions (Inner Mongolia and Zimbabwe)

Insights

Securities Restructuring Specialist

CHNR's 8:1 reverse stock split aims to maintain Nasdaq listing requirements without changing fundamental company value.

China Natural Resources (CHNR) has announced an 8:1 reverse stock split (officially termed a "share combination") effective June 13, 2025. This corporate action will convert every eight existing shares into one new share, with fractional shares rounded up to the next whole share. The stock will maintain its CHNR ticker but receive a new CUSIP identifier (G2110U125).

This type of share restructuring is typically implemented for one of two reasons: either to increase the per-share price to maintain exchange listing requirements (Nasdaq requires minimum $1 per share) or to boost investor perception with a higher nominal share price. While the announcement doesn't explicitly state the motivation, the former reason is most likely given CHNR's history as a smaller-cap resource company.

Importantly, this action represents a technical adjustment rather than a fundamental change in company value. The total market capitalization remains unchanged, as each shareholder will own proportionally the same percentage of the company (with minor adjustments from rounding fractional shares). All outstanding options, warrants, and other derivative securities will be proportionally adjusted to maintain their economic value.

CHNR's current business operations focus on mining exploration in Inner Mongolia, with a pending acquisition of Williams Minerals, a Zimbabwe lithium mining operation, for up to $1.75 billion. This substantial acquisition from its controlling shareholder (Feishang Group) represents a significant pivot toward battery metals, reflecting the company's strategic positioning in the evolving natural resource sector.

HONG KONG, June 10, 2025 /PRNewswire/ -- China Natural Resources, Inc. (NASDAQ: CHNR), a British Virgin Islands ("BVI") company (the "Company") today announced that it will implement the combination (the "Combination") of issued and outstanding common shares, without par value, of the Company. The Company's common shares will begin trading on a post-Combination basis at market open on June 13, 2025.

Upon the effectiveness of the share combination, every eight issued and outstanding common shares will automatically be converted into one issued and outstanding common share. No fractional shares will be issued as a result of the share combination. Instead, any fractional shares that would have resulted from the combination will be rounded up to the next whole share. The share combination affects all shareholders uniformly and will not alter any shareholder's percentage interest in the Company's outstanding common shares, except for adjustments that may result from the treatment of fractional shares. All outstanding options, warrants and other rights to purchase the Company's common shares will be adjusted proportionately as a result of the share combination.

The Company's common shares will continue to trade under the symbol "CHNR" but with a new CUSIP number, G2110U125.

About China Natural Resources:

China Natural Resources, Inc. (NASDAQ: CHNR) is currently a holding company that operates in exploration and mining business. Upon the completion of Precise Space-Time Technology disposition on July 28, 2023, the Company is engaged in the acquisition and exploitation of mining rights in Inner Mongolia, including exploring for lead, silver and other nonferrous metal, and is actively exploring business opportunities in the healthcare and other non-natural resource sectors. In 2023, China Natural Resources agreed to acquire Williams Minerals, which operates a lithium mine in Zimbabwe, for a maximum consideration of US$1.75 billion. Currently, we are actively working with all involved parties to close the deal as soon as possible. Williams Minerals is owned by China Natural Resources' controlling shareholder, Feishang Group Limited, and a non-affiliate, Top Pacific (China) Limited.

Forward-Looking Statements:

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

View original content:https://www.prnewswire.com/news-releases/china-natural-resources-announces-effective-date-of-share-combination-302477998.html

SOURCE China Natural Resources, Inc.

FAQ

What is the ratio of CHNR's reverse share combination announced for June 2025?

CHNR announced a 1-for-8 reverse share combination, where every eight existing common shares will be converted into one share.

When will CHNR's reverse share combination take effect?

The reverse share combination will take effect at market open on June 13, 2025.

What happens to fractional shares in CHNR's reverse share combination?

Any fractional shares resulting from the combination will be rounded up to the next whole share.

What is CHNR's new CUSIP number after the reverse share combination?

The new CUSIP number will be G2110U125, while continuing to trade under the symbol CHNR.

How much is CHNR planning to pay for Williams Minerals acquisition?

CHNR agreed to acquire Williams Minerals, a lithium mine in Zimbabwe, for a maximum consideration of US$1.75 billion.