Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 284

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 284
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 |         | 450,782 |     |     | 62,029 |

| F-108 |

| CHINA NATURAL RESOURCES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(Amounts in thousands, except share and per share data) |

| 16. | EQUITY (CONTINUED) |

* On February 16, 2024, the Company entered into a securities purchase
agreement with certain institutional investors, pursuant to which the Company agreed to issue and sell, (i) in a registered direct offering,
up to an aggregate of 1,487,870 of common shares with no par value of the Company at a per share purchase price of US$2.20 (the “Registered
Offering”), and (ii) in a concurrent private placement, warrants initially exercisable for the purchase of an aggregate of 1,115,903
common shares of the Company at an exercise price of $3.00 per share. The Registered Offering was closed on February 21, 2024.

The Company recognized the warrants issued
to the investors as derivative financial liabilities (Note 14.b) at the fair value of the warrants on the issue date, which amounted to
CNY8,229 (US$1,145*), as the investors have the right to exercise their warrants on a cashless basis according to the agreement clause.
Per IAS 32, a contract settled by a single net payment (generally referred to as net cash-settled or net equity-settled as the case may
be) is a financial liability and not an equity instrument. The gross proceeds of this offering less the fair value of warrants issued
to investors amounted to CNY15,305 (US$2,129*) and was recorded in share capital.

Upon the closing of this offering and the
private placement, the Company paid or committed to pay fees and offering expenses of CNY5,250 (US$730*), which consists of 8% of gross
proceeds and certain expenses reimbursement to the placement agent in cash and the offering expenses related to other professional services.
The total amount of fees and offering expenses were allocated to the issuance of common shares and investor warrants according to their
fair value at the date of issuance. The amount allocated to the issuance of the shares of CNY3,414 (US$475*) have been charged directly
to equity as a