On May 22, Hainan Province-based Chinese miner Hainan Mining Co., Ltd (formerly known as Hainan Mining United Co., Ltd.) announced that it will issue 88 million shares at the base price of RMB 15.9 ($2.6) per share to raise up to RMB 1.4 billion ($0.226 billion) in funds.
In particular, RMB 800 million ($129 million) will be used for the development of the Shilu iron ore mining area in Hainan and for related auxiliary projects, while RMB 400 million ($64.5 million) will be invested in the company's supply chain and in related service projects for natural resource commodities. Meanwhile, the company is seeking to set up an e-commerce platform which will help it expand from focusing solely on the iron ore business to natural resource commodities in general.
Following the company announcement, Hainan Mining's shares indicated a sharp rise of 10 percent on the same day.