SINGAPORE (Dec 24): CNMC Goldmine Holdings says plans for a dual primary listing in Hong Kong has been rejected by the Mainboard of the Hong Kong Stock Exchange (HKSE).
This comes after the group’s application was reviewed by the exchange’s listing committee and ultimately, deemed unsuitable as CNMC’s market capitalisation failed to meet the requisite minimum of sum of HK$500 million ($87.7 million).
As at Dec 14, CNMC’s shares closed at 19.8 cents with a market cap of $80.7 million or about HK$458 million.
The listing committee further noted that the company’s share price has recently been on the decline.
In a Monday filing to the SGX, CNMC reiterates its intent was not to raise capital for any intended business expansion, but to create meaningful liquidity for its company’s shares in Hong Kong through its proposed dual listing.
CNMC says its board accepts the rejection and would like to reassure shareholders that the group remains fully committed to various growth initiatives it previously set out in its latest financial results announcement for 3Q18.
To recap, CNMC last announced that it was planning for a gold de-absorption and smelting facility next to its carbon-in-leach (CIL) plant as part of efforts to enhance production efficiency.
Plans are also underway to replace its three existing heap leach pads with two new ones, and in another effort to boost production, the group will begin underground mining in 2019.
Further, CNMC says an independently commissioned estimate – conducted for the purposes of its its intended dual listing on the HKSE – showed that its Sokor gold project’s mineral resources had increased 9% over the period from end-2017 to Oct 15 this year to 785,000 oz as a result of the group’s continuous exploration works.
Shares in CNMC closed 2.5% lower at 19 cents on Friday, having fallen 29.6% or 8 cents in the year to date.