ISR Capital's new exec chairman has 'full faith' in firm
The new executive chairman of a firm that been queried
several times by the Singapore Exchange (SGX) over a proposed mining deal said
that the company "practises the highest levels of corporate governance and
ethics".
Comments
GRACE LEONG
08 December 2016
The new executive chairman of a firm that been queried several times by the Singapore Exchange (SGX) over a proposed mining deal said that the company "practises the highest levels of corporate governance and ethics".
Mr Chen Tong, who took on the job at ISR Capital on Nov 18, said yesterday that he has "full faith in the company's business direction".
He added that he hopes to address "possible misconceptions" over the Nov 27 trading suspension in ISR's shares, among other issues.
ISR Capital - formerly known as Asiasons WFG Financial - has said that its business is not associated with the individuals and firms under investigation by the Commercial Affairs Department over the 2013 penny stock crash.
Those firms include Asiasons Capital, now renamed Attilan Group, Blumont Group and LionGold Corp.
ISR said it is working on getting the trading suspension lifted.
The SGX cited "circumstances that prevent trading in the shares of the company on an informed basis" when imposing the curb.
Its latest query centred on whether a new valuation report on the concession had been done in accordance with listing rules.
Mr Chen said yesterday that ISR plans to commission a third independent report by another qualified valuer to assess the value of the concession in Madagascar and to address remaining issues raised by the query.
ISR said in June and July that it planned to acquire a 60 per cent stake in Tantalum Holding (Mauritius) for $40 million. Tantalum owns a company called Tantalum Rare Earth Malagasy, which in turn holds a rare earths mining concession in Madagascar.
In July, the SGX questioned the purchase price, which was seven times the amount paid by seller REO Magnetic just six months earlier.
The SGX said it was concerned over whether it was "fair and reasonable and in the interests of the company and its shareholders".
ISR's audit committee responded that the price was fair and reasonable as it had taken into account the market valuation of the asset and technical reports.
However, the SGX said that the valuation report, prepared by Geologica, did not meet listing rules requirements as it was prepared by a sole proprietor.
ISR then hired Al Maynard & Associates to prepare a new valuation report, which valued the concession at US$1.1 billion (S$1.57 billion).
The SGX asked if this valuation met listing rules. It noted that the report did not disclose a discussion on the data collection, quality control for the mineral resource estimates or how the resource estimates were derived, among other things.
ISR has raised $6 million from a share placement, with a second tranche of $6 million to be placed.
Mr Chen said he personally invested $2 million in the placement and will commit another $2 million for the second tranche of shares.