Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original
June 13, 2025
Company name: Toho Zinc Co., Ltd.
Name of representative: ITO Masahito, President
and Representative Director (Securities code: 5707)
Inquiries: SERI Koichi, Executive Manager of Mineral Resources Business Department
(Telephone: +81-3-4334-7307）
[Updated]Notice Regarding Transfer of Shares in Abra Mining Pty Ltd and Completion of Withdrawal from Mineral Resources Business
Toho Zinc Co., Ltd. (the "Company") hereby announces that it has completed its withdrawal from the mineral resources business following the transfer of all shares in Abra Mining Pty Ltd ("Abra") previously held via its wholly owned consolidated subsidiary, CBH Resources Limited ("CBH").
Abra, an Australian joint venture affiliate (equity method accounted investment) of the Company, engaged in the mineral resources sector, entered Voluntary Administration under the Australian Corporations Act in April 2024. In May 2025, Endurance Mining Pty Ltd ("Endurance"), a wholly owned subsidiary of Abra's largest creditor, Taurus Mining Finance Fund No.2 L.P. ("Taurus"), submitted a restructuring plan which was approved by Abra's creditors. Under the terms of the restructuring, a Deed of Release became effective on 4 June 2025, pursuant to which the Company transferred its shares in Abra to Endurance and was released from all obligations relating to Abra. This release eliminates the risk of any future claims arising from the Company's involvement with Abra.
The transfer of Abra shares, along with the previously completed divestitures of the Endeavor and Rasp Mines in Australia, marks the full divestment of all mining assets held through CBH and the Company's complete exit from the mineral resources business.
Transfer of Abra shares held by the Company
Commercial production at the Abra Mine commenced in January 2023 however both the ore grade and volume of ore subsequently mined were below initial expectations. In addition, unseasonable weather and other logistical challenges adversely affected Abra's revenues and cash flow. On 4 April 2024, Abra's board of directors resolved to enter Voluntary Administration, citing difficulties in securing support measures from creditors and the increasing likelihood of short-term liquidity issues. In May 2025, Taurus submitted a formal restructuring proposal to the appointed administrator, which was subsequently approved by creditors.
In line with the Company's strategic withdrawal from the mineral resources business, as set out in the "Summary of Business Reorganization Plan and Capital Increase through Third-Party Allotment" dated 18 December 2024, the Company and CBH Western Australia Pty Ltd ("CBHWA"), a wholly owned subsidiary of CBH, entered into an agreement with the parties responsible for implementing the restructuring. This agreement provided that the Company and CBHWA would be fully released from all obligations related to Abra in exchange for the transfer of its shares to Endurance. The Deed of Release took effect on 4 June 2025 and the share transfer from CBHWA to Endurance was completed on the same date.
Future Outlook
With the completion of this transaction, the Company has finalized its exit from the Abra Project. Together with the sales of the Endeavor and Rasp Mines, both concluded in 2024, the Company has now divested all mining interests held via CBH. Going forward, the Company will focus on core and growth businesses that offer stable earnings and future growth potential.
Impact on the Company's financial results
The impact of this matter on the Company's financial results for the fiscal year ending March 31, 2026 is expected to be immaterial.