Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 183

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 183
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PFIC”) for its current taxable year. If the Company is or becomes a PFIC, the foregoing
description of the U.S. federal income tax considerations to U.S. Holders of the acquisition, ownership and disposition of Common shares
could be materially different. The U.S. federal income tax consequences of owning and disposing of Common shares if the Company is or
becomes a PFIC are described below under the heading “Tax Consequences if the Company is a PFIC.”

A
non-U.S. corporation is a PFIC for each tax year in which (i) 75% or more of its gross income is passive income (as defined for U.S. federal
income tax purposes) (the “income test”) or (ii) 50% or more (by value) of its assets (based on an average of the quarterly
values of the assets during such tax year) either produce or are held for the production of passive income (the “asset test”).
For purposes of the PFIC provisions of the Code, “passive income” generally includes dividends, interest, certain rents and
royalties, certain gains from commodities or securities transactions and the excess of gains over losses from the disposition of certain
assets which produce passive income. If a non-U.S. corporation owns at least 25% (by value) of the stock of another corporation, the non-U.S.
corporation is treated, for purposes of the income test and asset test, as owning its proportionate share of the assets of the other corporation
and as receiving directly its proportionate share of the other corporation’s income.

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Under
certain attribution and indirect ownership rules, if the Company is a PFIC, U.S. Holders will generally be deemed to own their proportionate
share of the Company’s direct or indirect equity interest in any company that is also a PFIC (a “Subsidiary PFIC”),
and will be subject to U.S. federal income tax on their proportionate share of (a) any “excess distributions,” as described
below, on the stock of a Subsidiary PFIC and (b) a disposition or deemed disposition of the stock of a Subsidiary PFIC by the Company
or another Subsidiary PFIC, both as if such U.S. Holders directly held the shares of such Subsidiary PFIC. In addition, U.S. Holders
may be subject to U.S. federal income