Lingbao Gold (03330) has released supplemental details on the planned use of the HK$770.60 million net proceeds expected from its April 2026 placing of existing H shares and top-up subscription of new H shares executed under the general mandate.
Approximately 65%, or HK$500.90 million, will fund expansion of the Simberi gold mine in Papua New Guinea, acquired through the April 2026 completion of the AUD370.00 million (about RMB1.74 billion) purchase of a 50% + 1 share stake in St Barbara Mining Pty Ltd. The expansion is targeted for completion and commissioning by late 2027.
Another 5%, equal to HK$38.50 million, is earmarked for additional overseas gold-asset M&A activity by end-2026. Lingbao Gold stated that no specific targets have been identified, but the reserve will allow the group to respond quickly to opportunities in “producing gold projects with significant scale and healthy cash flows”.
A further 15%, or HK$115.60 million, will accelerate domestic exploration and mineral-reserve expansion initiatives—leveraging recent advances in three-dimensional digital technologies—also scheduled for full deployment by end-2026.
The remaining 15% (HK$115.60 million) is designated for general working-capital supplementation, mainly raw-material procurement, amid rising input prices recorded in the first quarter of 2026.
Management highlighted that the subscription shares will represent about 2.16% of the enlarged share capital, with the placing price set at a 4.53% discount to the pre-announcement closing price, resulting in what the board considers a “minimal” dilution effect.
Lingbao Gold also provided an update on earlier financings: of the HK$1.15 billion zero-coupon convertible bonds issued in November 2025, HK$615.40 million has been applied to the St Barbara acquisition and HK$230.30 million to working-capital and loan repayments, leaving HK$305.90 million reserved for future gold-sector acquisitions; all 65.40 million shares potentially issuable on full conversion of those bonds are deemed utilised under the general mandate.
Completion of the current placing and subscription remains subject to conditions precedent, and the agreement allows for termination under specified circumstances. The company has urged shareholders and potential investors to exercise caution when dealing in its shares.