China Metal Resources Utilization or CMRU (HKG:1636) on Sept. 27 agreed to issue 400 million yuan of convertible bonds to Sichuan Kaiyue Investment, a Thursday bourse filing said.

The convertible bonds carry a 6% per annum interest rate and will fall due two years from the date of issue.

The bonds are convertible into 1,068,364,985 shares at HK$0.465 apiece, representing a little over 19% of the company's enlarged issued share capital.

Proceeds from the issue of the bonds, which is subject to shareholder approval, will be used to reduce existing debts and provide the copper products manufacturer with working capital.