Hong Kong Gold Industry Group (02623) plans to increase its holdings of MJS shares by HK$92.3462 million and increase its shareholding to 9.45%

According to Zhitong Finance App News, Hong Kong Gold Industry Group (02623) announced that on November 2, 2026, the company and the seller, Junjing Capital Management Co., Ltd. signed a sales agreement on the acquisition. According to this, the company has agreed to the acquisition, and the seller has already agreed to sell a total of 94.238 million MJS shares, accounting for about 6.63% of MJS's total issued share capital at the date of this announcement, at a total cost of HK$92.362 million.

Prior to the acquisition, the company entered into an acquisition agreement with the seller on September 16, 2026. Based on this, the company agreed to acquire 25 million shares of MJS at a cost of HK$19.6374 million.

As of the date of this announcement, the company held 40.105 million shares of MJS. After the acquisition is completed, the company will hold a total of 134 million MJS shares, accounting for about 9.45% of the total issued MJS share capital of 1,421 million shares at the date of this announcement.

MJS is a mining company listed on the Toronto Stock Exchange GEM Tier 1. The trading code is “MJS”. It is a gold mining company based in Vancouver, Canada. It is engaged in mining business in China and directly owns exploration and evaluation properties in China and Canada. MJS's main business involves the acquisition, exploration and development of mining properties. On June 30, 2026, its mining property rights and mining business were located in China, including SJG, as its flagship project. MJS holds 44.06% of SJG's actual interest through its subsidiary Jihai Gold, which holds 58.75% of the shares, while Jihai Gold holds 75% of SJG's shares, and the remaining 25% is held by Yantai Dahedong Mineral Processing Co., Ltd. MJS also holds exploration properties in China and Canada. It began commercial gold production at the SJG open pit in May 2011. Its open pit mining license is valid until May 17, 2031. The SJG underground mine is close to the north of the SJG open pit, and production began in October 2019. The area is located under a precious metal mineralization vein and is covered by a five-year mining license covering an area of 0.414 square kilometers. The license was granted on February 18, 2016 and renewed on February 18, 2021, and is valid until February 18, 2031. The mining license area covers the gold mineralization extension currently being developed at the adjacent SJG open pit. According to the latest financial reports of MJS and Jihai Gold, the two showed good overall financial performance; in addition, Jihai Gold's strategic decision was to focus on other acquisition opportunities for mining assets in jurisdictions other than Yantai to establish a more balanced and resilient operating portfolio and use the net proceeds from the placement completed on October 14, 2025 to strengthen its gold resources. The directors believe that the previous acquisitions and acquisitions are suitable and long-term strategic investments, which will allow the Group to further expand its business into the gold mining industry. With MJS's platform in Canada and its local mining team, previous acquisitions and acquisitions aim to broaden the channels for obtaining high-quality overseas project acquisition opportunities and enhance multinational project capabilities through the provision of operation management services, thereby reducing risks associated with overseas investment. Previous acquisitions and acquisitions also have the effect of aligning MJS, which is the target of investment, with the interests of the Group as a shareholder, thereby encouraging all parties to support and develop MJS's growth and success. At the same time, it also helps the Group explore potential business cooperation opportunities and promote the Group's business diversification plans. Although no formal agreement has been reached on this matter, in fact the Group has been in touch and negotiations with senior management members of Jihai Gold and MJS to explore possible business cooperation, including potential co-investment in overseas mining projects.

After considering the above factors, the Group has identified MJS as an appropriate investment target to establish a long-term cash flow portfolio in the mining industry. The Board believes that using the net proceeds from the placement for the above purposes is consistent with investment and acquisition purposes.