Shares of MMG rose as much as 7.5% to HK$2.45 in morning trading, the highest since Sept. 29 and marking their biggest one-day percent gain since April 14.
"The acquisition of Khoemacau mine is an important step in achieving our vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for our shareholders," MMG Chairman Jiqing Xu said in a statement.
Smelters in China, the world's top consumer of refined copper, face an increasing challenge in securing copper concentrate, as they boosted capacity in recent years amid slower mining output growth.
Khoemacau is located in the Kalahari Copper Belt, a vast swathe of land that stretches from north-east Botswana to parts of western Namibia.
It produces about 60,000 tons of copper and about 2 million ounces of silver per year. Output could be ramped up to about 130,000 tons of copper and 5 million ounces of silver per year with additional investments.
In its filing on Tuesday, MMG said it would satisfy the consideration or any funding requirements for Cuprous Capital by securing a combination of shareholder loan and third-party financing.
The deal is pending approval from regulatory bodies in China and Botswana, the filing showed. MMG said it expects the deal to complete in the first half of 2024.
Macquarie Capital and Citigroup acted as joint financial advisors to MMG on the deal.
