On June 2, Shandong Province, China-based Zhongrun Resources Investment Incorporated Company (Zhongrun Resources) announced that it will issue 4.808 billion shares at the base price of RMB 5.9 ($0.95) per share to raise up to RMB 28.368 billion ($4.58 billion) in funds.
In particular, RMB 12.22 billion ($1.97 billion) of the raised funds will be spent on the acquisition of Iron Ore International (Mongolia) Limited, Mongolia New La Le Gao Te Iron Mining LLC, and Shiny Glow Limited - all Mongolian iron ore companies
About RMB 9.014 billion ($1.45 billion) will be invested in Mongolia-based Boldtumur Eruu Gol LLC's iron concentrate mining project with an annual capacity of 20 million mt of fine ore.
Meanwhile, about RMB 6.722 billion ($1.08 billion) will be used to repay loans and RMB 4.129 billion ($0.67 billion) will be used to replenish the company's working capital.