Korea Zinc Subsidiary Richmond Valley Solar Farm and BESS Project Raises AUD 387 Million via Preferred Share Issuance to Meritz Securities SPV with Swap Agreement

Korea Zinc's Australian subsidiary Richmond Valley Energy Reserve Holdings Pty Ltd has decided to issue 193,392,978 convertible preferred shares to fund the construction of a solar farm and battery energy storage system.
The issue price is AUD 2 per share approximately KRW 2,071 with total proceeds of AUD 387 million about KRW 400.6 billion allocated entirely to New South Wales Solar No. 1 Co., Ltd., a special purpose vehicle established by Meritz Securities.
These preferred shares are non-voting but convertible into common shares at a 1:1 ratio and Korea Zinc will enter into a three-year Price Return Swap PRS contract on the new shares to retain economic exposure.
As the capital increase is at the subsidiary level and not a direct issuance by Korea Zinc, dilution for existing shareholders is limited. The plant is scheduled to break ground in October 2026 and begin commercial operations in January 2029.
[AI Summary]Korea Zinc's large-scale funding of an Australian renewable energy project with a swap agreement to hedge economic losses is positive, but risks include construction delays and currency fluctuations. Short-term stock impact is limited but long-term profitability may improve.