China Nonferrous Mining (HKG:1258) plans to issue $300 million of zero-coupon convertible bonds due 2031, according to a Thursday bourse filing.
The bonds will have an initial conversion price of HK$22.18 per share, a 29% premium to the company's Aug. 26 closing price of HK$17.20.
They will mature on Sept. 2, 2031 and carry no interest.
The company expects the bonds to be convertible into about 106 million shares if fully converted, equivalent to 2.72% of its existing issued share capital.
China Nonferrous Mining plans to use all net proceeds to fund construction of its sulfide ore resource development project for shaft No. 28 in Luanshya, Zambia, which is expected to require total investment of about $530 million.
The bonds are expected to be listed on the Hong Kong Stock Exchange, with the issue and conversion subject to certain conditions.