CHINFMINING (01258) announced that, as of the date of this announcement, the company held a total of 15% of the issued share capital of SM Minerals. On December 19, 2025, the company entered into a share purchase agreement with the original shareholders to acquire 64,700 shares of SM Minerals, representing 55% of its issued share capital, for a purchase price of $89 million. Upon completion of the transaction, CHINFMINING will hold a total of 70% of SM Minerals' issued share capital.

The Benkara Project consists of the Benkara North mining license and Benkara South exploration license, collectively referred to as the "Mining Rights," covering a total area of 34.3 square kilometers in Kazakhstan's Aktobe region. The Mining Rights grant the holder exclusive rights to explore and mine copper resources within the licensed area for a fixed period.

As of the announcement date, the Benkara North deposit has estimated ore resources of 384 million tons, containing 1.58 million tons of copper metal with an average grade of 0.41%. Of this, proven and controlled copper metal reserves account for 940,000 tons, approximately 60% of the total. The project also has an average associated gold grade of 0.1g/t, though historical gold assay delays have prevented the inclusion of associated gold resources in the qualified report.

Since July 2025, the company has completed supplementary exploration fieldwork, with updated copper and associated gold resource estimates to be disclosed upon completion of resource calculations. Preliminary estimates suggest an open-pit mining and processing capacity of 14 million tons of ore per year, producing copper concentrate with an annual output of approximately 45,000 tons of copper content at full production.

The Benkara South deposit remains in the early exploration stage, with only inferred resources currently confirmed. Initial plans target the completion of feasibility studies and preliminary design for Benkara North by 2027, followed by construction commencement in 2027 and production start-up in 2029, providing strong support for the company's resource expansion and production growth.

Benkara North holds approximately 1.5 million tons of copper resources, offering significant value for large-scale mining operations, with further exploration expected to unlock additional resource potential. This acquisition marks a key strategic foothold for CHINFMINING in Central Asia, injecting new growth potential for future resource development in the region.