CGN Mining Company Limited (01164.HK) saw its stock price surge by 19.88% during Wednesday's intraday trading, following the announcement of a significant sales and purchase agreement for natural uranium with China Uranium Development, its controlling shareholder.
The company revealed that its subsidiary, CGN Global, has entered into this agreement with China Uranium Development, which holds approximately 56.43% of CGN Mining's issued shares. This deal is classified as a connected transaction and requires approval from Independent Shareholders. The purchase price for the uranium is set with reference to the forecasted spot price of US$75.78/lb, as projected in the 2025 market report by UxC, a leading nuclear fuel market research and analysis firm.
In addition to the uranium sales agreement, CGN Mining has also announced new framework agreements for financial services with CGN Finance and CGNPC Huasheng. These agreements ensure that loans and facilities will be provided on favorable commercial terms without asset security, potentially improving the company's financial flexibility. The combination of these strategic moves appears to have sparked investor enthusiasm, driving the significant uptick in CGN Mining's stock price.
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