HFW advises China Hanking on HK$1.14 billion pre-IPO capital raising for Australian gold business

Global, sector-focused law firm HFW has advised China Hanking Holdings Limited (China Hanking) on its HK$1.14 billion pre-IPO capital raising for its subsidiary, Hanking Gold, which the company is spinning off and preparing to list on the Hong Kong Stock Exchange.

China Hanking is a Hong Kong-listed mining company focused on the production and sale of iron ore concentrate and high-purity iron. Its subsidiary Hanking Gold holds gold assets in Australia, including the Mt Bundy Gold Project in the Northern Territory and the Cygnet Gold Project in Western Australia.

The capital raising was conducted via a series of subscription agreements, under which a total of 436,550,000 new shares, representing approximately 17.3% of Hanking Gold’s enlarged issued share capital, were issued at a price of HK$2.62 per share. China Hanking led the round, subscribing for approximately 340 million shares (which included a strategic stake of 85 million shares subscribed by global mining leader Zijin Mining) with the remainder taken up by other investors.

The proceeds will be used to advance the development of Hanking Gold’s Australian gold projects and support the company’s planned IPO.

The HFW team advising China Hanking was led by Australia partner Bryn Davis and Hong Kong partner Wing Cheung, with support from senior associate Max Hui, and associates Albert Cheung and Joey Sze.

HFW is also advising China Hanking on the proposed spin-off of Hanking Gold.

Bryn Davis, Partner, HFW: “We were pleased to support China Hanking on this significant capital raising, which positions Hanking Gold for its next phase of growth and its proposed listing on the Hong Kong Stock Exchange.”