China Nonferrous Mining Corporation launched a $300 million zero-coupon convertible bond offer on Wednesday to fund the development of its Luanshya copper project in Zambia.

The Hong Kong-listed copper producer entered into a subscription agreement on August 26 with CICC as the sole global coordinator and bookrunner. The bonds mature on September 2, 2031, and are issued at 100.5% of face value.

The initial conversion price is set at HK$22.18 per share, representing a 29% premium over Wednesday's closing price of HK$17.20 and approximately 47% over the average closing price of HK$15.09 over the preceding five trading days.

The bonds can be converted into roughly 106 million shares, representing approximately 2.72% of the company's existing issued share capital.

Chairman, Zhang Jinlei said the capital injection would accelerate work on the Luanshya No. 28 Shaft sulphide ore resource project, a core component of the broader $680 million Luanshya New Mine development.

"The net proceeds are estimated at approximately $300.6 million and will be used in full for the development of the Luanshya No. 28 Shaft sulphide ore resource project in Zambia," Zhang said in a statement. "After more than 20 years of closure, the upper orebody of the Luanshya mine resumed production in August 2026, and this deep project represents the next phase of our expansion strategy."

The bonds carry no coupon and are senior unsecured debt. Investors may sell the bonds back to the company after three years at 100% of face value. The company has obtained a foreign debt registration certificate from China's National Development and Reform Commission and will file with the China Securities Regulatory Commission.

The four-year Luanshya New Mine project, upon reaching full production, will have an annual mining capacity of 2.2 million tonnes of ore and produce approximately 43,000 tonnes of copper concentrate contained copper annually. China Nonferrous Mining acquired the Luanshya mine in 2009 and holds an 80% stake.

The company currently has four other mine projects under construction or in planning, including the Kangbovu Mensesa orebody project, the Chambishi Samba copper project, the Chambishi Southeast Orebody Phase II project, and the Bencala project in Kazakhstan.

The bond offering is expected to close on September 2, subject to satisfaction of several conditions precedent.

"With the Luanshya New Mine and our other pipeline projects, we are building the foundation for sustained production growth," Zhang stated.