China Natural Resources Shares Soar 12.5% on Reverse Split

China Natural Resources (NASDAQ: CHNR) has announced a 1-for-8 reverse share combination effective June 13, 2025. Every eight existing common shares will be automatically converted into one share, with fractional shares rounded up to the next whole share. The stock will continue trading under CHNR with a new CUSIP number G2110U125. The combination will not alter shareholders' percentage ownership except for fractional share adjustments. All outstanding options, warrants, and rights will be proportionally adjusted. CHNR operates in mining exploration in Inner Mongolia and is working to acquire Williams Minerals, a Zimbabwe lithium mine, for up to $1.75 billion from Feishang Group Limited and Top Pacific (China) Limited.

This type of share restructuring is typically implemented to increase the per-share price to maintain exchange listing requirements or to boost investor perception with a higher nominal share price. While the announcement doesn't explicitly state the motivation, the former reason is most likely given CHNR's history as a smaller-cap resource company. Importantly, this action represents a technical adjustment rather than a fundamental change in company value. The total market capitalization remains unchanged, as each shareholder will own proportionally the same percentage of the company (with minor adjustments from rounding fractional shares).

CHNR's current business operations focus on mining exploration in Inner Mongolia, with a pending acquisition of Williams Minerals, a Zimbabwe lithium mining operation, for up to $1.75 billion. This substantial acquisition from its controlling shareholder (Feishang Group) represents a significant pivot toward battery metals, reflecting the company's strategic positioning in the evolving natural resource sector.