Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 62

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 62
---
 assurance that the conditions will be fulfilled or waived, or that the acquisition will be completed.

The completion of
the Acquisition is subject to a number of conditions, including, among other things, the transfer of ownership interests in Williams
Minerals from the Sellers to the intermediate holding company; the Company’s payment of the first installment of US$140 million,
in cash or by way of promissory notes, to the Sellers; the issuance of independent technical reports regarding the amount of qualified
measured, indicated and inferred resources quantity of lithium oxide proven to be in each region of the mining area; the settlement of
the then-total consideration accumulated in cash and restricted shares, as calculated in reference to the issued independent technical
reports; and the transfer of ownership rights to the Company for each region of the mining area. Pursuant to the Zimbabwe SPA, for each
relevant region of the lithium mine, until the Company’s legal possession and control vests, the Sellers will maintain legal possession
and control, including the right of exploration, sale of lithium, and the revenue derived therefrom, as well as liability for operational
costs and third-party claims. The Company’s legal possession and control of each relevant region only vests upon its settlement
of the then-total consideration accumulated. There can be no certainty, nor can we provide any assurance, that all conditions will be
satisfied or waived, or, if satisfied or waived, when they will be satisfied or waived and, accordingly, the acquisition may not be completed.
Although we expect that the last independent technical report will be completed, and accordingly ownership rights to the last mining
region (as described above) will vest with the Company, in 2026, there is no guarantee that the Acquisition will be completed on such
timeline, or at all.

Failure to complete the Acquisition may have a material adverse effect on the Company’s business, financial condition and results of operations.

If the Acquisition is not completed,
the ongoing businesses of the Company may be adversely affected and the Company will be subject to several risks, including (i) having
to pay certain costs relating to the Acquisition, such as legal, accounting, and external consultant fees, (ii) the focus of management
on the Acquisition instead of on pursuing other opportunities that could be beneficial, (iii) negative reactions from the financial markets,
which could cause a decrease in the market price of our shares, particularly if the market price reflects market assumptions that the
Acquisition will be completed or completed on certain terms; and (iv) negative