Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 107

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 107
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 non-interest-bearing loans from the Related-Party Debtholders, and the proceeds from
private placement in 2024 will continue to meet our capital expenditure needs in the foreseeable future. However, as we are actively
exploring new business opportunities in lithium resources in Zimbabwe, we may face growing shortage of working capital in the near future,
and we envisage engaging in further capital-raising activities in pursuit of other business opportunities in the PRC to diversify our
operations as we move into our next phase of growth. In addition, Feishang Group Limited and Feishang Enterprise Group Company Limited,
related parties which have provided non-interest-bearing loans, have confirmed they will not recall any amounts due to them until the
Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group.

Material Cash Requirement

Other than the ordinary cash requirements
for our operations and capital expenditures, our material cash requirements as of June 30, 2024 primarily include our contractual obligations.

In February 2023, the Company entered into the Zimbabwe SPA with Feishang Group, Top Pacific, Mr. Li Feilie and
Mr. Yao Yuguang to acquire Williams Minerals, which owns the mining permit for a Zimbabwean lithium mine for maximum consideration of
US$1.75 billion (subject to the terms and conditions of the Zimbabwe SPA). The Company does not have the adequate cash to pay for the
purchase consideration. In addition to the promissory note payment arrangement as contemplated by the Zimbabwe SPA, the Company may issue
restricted or non-restricted CHNR shares at a discount to the market price if market sentiment permits.

Contractual Obligations

The following table
summarizes our contractual obligations (in thousands) as of June 30, 2024:

|                                             |     | Payments      
 due by period |     |     |        |     |     |            |   |     |            |   |     |            |   |
|                                             |     | Total         |     |     | Within 
 1 year |     |     | 1          
 to 3 years |   |     | 3          
 to 5 years |   |     | Thereafter |   |
|                                             |     | CNY           |     |     | CNY    |     |     | CNY        |   |     | CNY        |   |     | CNY        |   |
| Lease liabilities                           |     |               | 376 |