ISR to buy 19.9% stake in Madagascar concession for S$13.3m
Mainboard-listed investment firm ISR Capital on Friday said
it has signed a deal with REO Magnetic, a private Singapore firm, to buy its
19.9 per cent shareholding in Tantalum Holding.
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Lee Meixian, Business Times
10 June 2016
Mainboard-listed investment firm ISR Capital on Friday said it has signed a deal with REO Magnetic, a private Singapore firm, to buy its 19.9 per cent shareholding in Tantalum Holding.
The purchase consideration is agreed at about S$13.3 million, and will be fully satisfied by ISR Capital issuing new shares to REO Magnetic at S$0.10 each.
It will issue about 133 million new shares.
REO Magnetic has agreed to a 12-month moratorium on the sale or transfer of any of the consideration shares from the date of their issue.
Tantalum Holding owns 100 per cent of Tantalum Rare Earth Malagasy, a Madagascar-incorporated company which holds a permit to explore and develop a concession hosting critical rare earth elements in the Ampasindava Peninsula in Madagascar.
The project has been assessed to host Dysprosium, Europium, Neodymium, Terbium, and Yttrium - rare earth elements that are termed "critical" because of their scarcity.
ISR said these assets will be in high demand. Their end products are essential for a wide spectrum of existing and emerging applications, especially in clean-energy technologies such as electric cars.
REO Magnetic currently has a 60 per cent stake in Tantalum Holding. The remaining 40 per cent is held by Tantalus Rare Earths AG (TRE-AG), a company set up in Germany.
Upon completion of the acquisition, ISR Capital will hold 19.9 per cent, REO Magnetic will hold 40.1 per cent and TRE-AG will continue to hold the remaining 40 per cent of Tantalum Holding.
ISR Capital's shares rose 0.2 cent to S$0.092 on Friday.