SINGAPORE (Nov 5): For more than two years, ISR Capital has attracted intense scrutiny from regulators and unflattering media headlines in its bid to acquire a stake in a rare-earth mining asset in Madagascar. Following the go-ahead from the Singapore Exchange, the deal was approved unanimously by shareholders present at an extraordinary general meeting on Oct 30.

ISR will now have to obtain renewal of the licence held by Tantalum Rare Earth Malagasy (TREM) for the exploration of a Madagascar concession. Only then can ISR go ahead and pay $3 million for a 60% stake in Tantalum Holdings (Mauritius) (THM), which fully owns TREM. ISR will pay for this acquisition by issuing 747.3 million new shares at 0.4 cent each to REO Magnetic, the vendor. Even if renewed, the exploration licence will need to be converted into a mining licence before actual production can begin.

Of some 20 attendees at the EGM, just one, Bonaventure Lim, a 54-year-old retiree, had questions for the board led by executive chairman Chen Tong. Lim asked: When can ISR expect earnings to roll in?

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