CGN Mining (01164.HK) saw its stock price skyrocket by 19.88% in Wednesday's morning trading session, following the announcement of a significant natural uranium sales agreement between its subsidiary and a major shareholder.

The surge comes after CGN Mining revealed that its subsidiary, CGN Global, has entered into a Sales and Purchase Agreement for natural uranium with China Uranium Development. This deal is particularly noteworthy as China Uranium Development is a controlling shareholder of CGN Mining, directly interested in approximately 56.43% of the company's issued shares.

The agreement, classified as a connected transaction, is subject to approval by Independent Shareholders. The purchase price for the uranium is set with reference to the forecasted spot price of US$75.78 per pound, as projected in the 2025 market report by UxC. Additionally, CGN Mining has entered into new framework agreements for financial services with CGN Finance and CGNPC Huasheng, ensuring favorable commercial terms for loans and facilities without asset security. These developments signal a potentially lucrative future for CGN Mining in the uranium market and have clearly excited investors, as reflected in the sharp stock price increase.