Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 182

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 182
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’s adjusted tax basis
in such Common shares. Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder’s holding
period in such Common shares exceeds one year. Long-term capital gain realized by a non-corporate U.S. Holder is currently eligible to
be taxed at reduced rates. The deduction of capital losses is subject to certain limitations.

Exercise or Lapse of a Warrant

Subject
to the PFIC rules discussed below, and except as discussed below with respect to the cashless exercise of a warrant, a U.S. Holder generally
will not recognize gain or loss upon the acquisition of Common shares on the exercise of a Warrant. A U.S. Holder’s tax basis in
Common shares received upon exercise of the Warrant generally will be an amount equal to the sum of the U.S. Holder’s tax basis
in the Warrant exchanged therefor and the exercise price. The U.S. Holder’s holding period for a Common shares received upon exercise
of the Warrant will begin on the date following the date of exercise (or possibly the date of exercise) of the Warrant and will not include
the period during which the U.S. Holder held the Warrant. If a Warrant is allowed to lapse unexercised, a U.S. Holder generally will
recognize a capital loss equal to such holder’s tax basis in the Warrant.

The
tax consequences of a cashless exercise of a warrant are not clear under current law. Subject to the PFIC rules discussed below, a cashless
exercise may not be taxable, either because the exercise is not a realization event or because the exercise is treated as a “recapitalization”
for U.S. federal income tax purposes. Although we expect a U.S. Holder’s cashless exercise of our warrants (including after we provide
notice of our intent to redeem Warrants for cash) to be treated as a recapitalization, a cashless exercise could alternatively be treated
as a taxable exchange in which gain or loss would be recognized.

Because
of the absence of authority on the U.S. federal income tax treatment of a cashless exercise, a U.S. Holder should consult its tax advisor
regarding the tax consequences of a cashless exercise.

PFIC Status of the Company

The
Company has not performed an analysis of whether or not it will be deemed a “passive foreign investment company” within the
meaning of Section 1297 of the Code (“