SINGAPORE (June 24): ISR Capital, which is on the Singapore Exchange watch-list, is to start talks with a China company to develop its rare earth concession in Africa.

ISR Capital says it has entered into a non-binding MOU with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co (NFC), a listed company on the Shenzhen Stock Exchange, to begin discussions on potential developments for its 75% owned rare earth concession located in north-western Madagascar.
ISR Capital on Jan 3 had completed the acquisition of the 238 sq km concession area in north-western Madagascar that is said to hold rare earth oxides – through a 60% stake in Tantalum Holding (Mauritius) (THM), which in turn owns 100% of Tantalum Rare Earth Malagasy S.A.R.L.U. (TREM).

See: ISR Capital hits new high of 23 cents, up 3,700% year to date

See: Big winners in ISR Capital’s bid for rare earths asset

ISR Capital subsequently increased its shareholding in THM to 75% on May 15 with the enforcement of share pledges made by Tantalus Rare Earths AG, which had defaulted on its obligation of repayment under the loan facility agreements.

Last Friday, ISR Capital said its latest financial figures had failed to meet the Singapore Exchange (SGX) requirements to stay out of the bourse's watch-list.

The group had recorded pre-tax losses in its most recent three straight years of financial reporting. As at June 20, the group's latest six-month average daily market capitalisation as stood at $11 million, below the $40 million minimum required by SGX.

SGX’s next quarterly review to identify issuers to be included on the watch-list will take place on the first market day of September.

While ISR Capital had legally completed the THM stake acquisition, it will still have to hold an EGM for shareholders to ratify its previous waiver of a condition precedent for a cash flow budget and liquidity plan.

See: ISR Capital still mired in losses in 1Q; to hold EGM for waiver approval in due time

ISR Capital was one of the stocks allegedly manipulated by John Soh Wen and Quah Su-Ling who are on trial for being the masterminds behind the rigging of three penny stocks -- Blumont Group, LionGold Corp and the Asiasons Capital, which is now known as Attilan Group -- back in 2013.

See: Prosecutors confirm links between ISR Capital and John Soh

The spectacular rise in the prices of the three stocks and their equally dramatic crash in October that year wiped off some $8 billion in market value from the Singapore Exchange.

Quah Su-Yin, sister of Su-Ling, also the CEO of ISR Capital when she was appointed on April 29, 2011. However, Su-Yin eventually resigned to “focus on family business” less than a month after ISR Capital announced on Dec 9, 2016, that it was under investigation by the Commercial Affairs Department and the Monetary Authority of Singapore.

See: John Soh-linked ISR Capital’s CEO Quah Su Yin resigns