Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 88

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 88
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 Group Limited, Top Pacific (China) Limited, Li Feilie,
and Yao Yuguang, dated February 27, 2023, a copy of which is incorporated by reference as Exhibit 4.17 to the 2022 Form 20-F for the
fiscal year ended December 31, 2022 filed with the SEC on May 15, 2023, Exhibit 99.1 to our current report on Form 6-K furnished to the
SEC on December 22, 2023 and Exhibit 99.1 to our current report on Form 6-K furnished to the SEC on December 31, 2024, respectively.

Acquisition and Sale of PST Technology

We diversified our
business by entering the environmental protection sector, which provides compelling synergies with our current operations, through the
acquisition of PST Technology. On July 27, 2021, the Company entered into a Sale and Purchase Agreement with Li Feilie, pursuant to which
the Company issued three million restricted common shares, no par value, and transferred 120 million shares of FARL, as well as approximately
CNY10.3 million (US$1.4 million), to Feishang Group, in exchange for all outstanding shares of PST Technology and the transfer to the
Company of approximately CNY130.0 million (US$17.9 million) of PST Technology’s outstanding debt previously owed to Mr. Li, which
debt was eliminated upon consolidation. PST Technology, through its wholly owned subsidiaries, owns a 51% equity interest in Shanghai
Onway. Shanghai Onway is principally engaged in the development of rural wastewater treatment technologies, the provision of equipment
and materials for rural wastewater treatment, undertaking EPC projects and public-private partnership (“PPP”) projects in
relation to rural wastewater treatment, and the provision of consulting and professional technical services. The total value of the consideration
that the Company provided to Mr. Li was approximately CNY104.1 million (US$14.3 million), which amount was a 20% discount to the valuation
(including the assigned debt) of PST Technology provided by an independent valuation firm.

On July 28, 2023, the Company
entered into a Sale and Purchase Agreement with Feishang Group Limited (“Feishang Group”). Pursuant to the agreement, the
Company agreed to sell 100% equity interest of PST Technology to Feishang Group, together with PST Technology’s outstanding payable
owed to the