Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 15

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 15
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 strategies and objectives. We are an offshore holding company incorporated in the British Virgin Islands and we are not a
Chinese operating company. As a holding company with no operations of our own, our operations are conducted in China through the
operating entities, and this structure involves unique risks to investors. Holders of our Common Shares will not directly hold any
equity interests in the operating entities. We have not adopted a VIE structure. The Chinese regulatory authorities could disallow
our corporate structure, which could result in a material change in our operations and the value of our Common Shares could decline
or become worthless. See “Risk Factors - Risks Relating to Our Operations and Doing
Business in the PRC - The PRC government may intervene or influence our operations at any
time, or may exert more control over the China operations of an offshore holding company and offerings conducted overseas and
foreign investment in China-based issuers, such as our PRC subsidiaries. Such control or influence may significantly limit our
ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be
worthless.”

The following diagram illustrates
our current corporate structure, which includes our significant subsidiaries as of the date of this prospectus:

Acquisition of Williams Minerals

On February 27, 2023, the
Company entered into a material definitive agreement (the “Zimbabwe SPA”) with Feishang Group and Top Pacific (China) Limited
(together, the “Sellers”), and the respective beneficial owner of the Sellers, Mr. Li Feilie and Mr. Yao Yuguang, to indirectly
acquire all interests in Williams Minerals, which owns the mining permit for a Zimbabwean lithium mine. On April 14, 2023, the Company
announced that it completed its due diligence investigation with satisfactory results and decided to proceed with the acquisition of William
Minerals (the “Acquisition”). The Company paid an aggregate of $35 million by way of promissory notes (instead of cash) as
a deposit on April 21, 2023, and will pay an aggregate of $140 million by way of promissory notes and/or cash as an initial installment.

On December 22, 2023,
the Company entered into an amendment agreement (the “Amendment Agreement”) to the Zimbabwe SPA with the parties
thereto. As the Sellers are still in the process of satisfying conditions precedent to the closing of the Acquisition in accordance
with the Zimbabwe SPA,