LYGEND RESOURCE (02245) signs agreement to establish joint venture company in Indonesia, expanding into wet method slag processing business.

LYGEND RESOURCE (02245) announced that on January 13, 2026, BBS and BMS signed the BJL Shareholder Agreement to establish a joint venture company BJL. The establishment of BJL joint venture company is to meet the business development needs of the company and to apply for necessary tax incentives in Indonesia. According to the BJL Shareholder Agreement, the initial investment amount of BJL is approximately 505 million US dollars, and BJL's statutory capital is 13,298.88 billion Indonesian Rupiah. The capital contribution will be made by the parties to the BJL agreement according to their respective shareholding proportions in BJL, with 99.999925% held by BBS and 0.000075% held by BMS. The parties to the BJL agreement intend to establish BJL to meet the business development needs of the company and qualify for tax incentives in Indonesia. It is expected that in the future, the wet slag treatment business tax cost will be reduced, optimizing the specific implementation plan. The wet slag treatment plant processes 1.34 million tons of HPAL smelting slag annually, along with a slag warehouse and its supporting facilities. This project will allow the company to reduce waste and effectively utilize resources in compliance with environmental protection principles. In addition, given the increasing infrastructure budget in Indonesia and the expected increase in demand for HPAL smelting slag treatment, the wet slag treatment business will create new sources of income and enhance the company's profitability. As of the date of this announcement, BMS is a wholly-owned subsidiary of the company. BBS is a non-wholly owned subsidiary of the company, with the company and TBP directly and indirectly owning 57.49776% and 42.50224% of the shares, respectively.