Baodi Mining plans to issue additional shares to acquire 87% equity in Congling Energy to enhance the competitiveness of its main business

According to the Zhitong Finance APP, Baodi Mining (601121.SH) announced that the company plans to acquire 82% equity of Congling Energy from Congling Industrial through the issuance of shares and cash payment, acquire 5% equity of Congling Energy from JAAN, and issue shares to no more than 35 specific investors who meet the conditions set by the China Securities Regulatory Commission to raise matching funds.

The company's main business is the mining, beneficiation processing, and sales of iron ore. Congling Energy's main business is consistent with that of the company, possessing good resource endowments at the Ziluoyi North Iron Mine, with rich reserves, a single type of ore, and good selectivity. It is one of the few high-quality mines in the country that can produce iron concentrate with a grade of over 68%. Congling Energy is currently carrying out construction related to a 3.2 million tons/year mining and beneficiation tailings project. Upon completion of the project, Congling Energy will rely on its high-grade iron concentrate to become a highly competitive iron ore supplier in the region. After the completion of this transaction, the company's iron ore mining and beneficiation scale and iron concentrate sales scale will be further enhanced, significantly increasing the supply of the company's high-quality iron concentrate, thereby further strengthening the competitiveness of the company's main business and improving its risk resistance and industry influence