Home News In print this week

Dynamics of ISR’s rare earth deal have changed

The Edge Singapore
The Edge Singapore8/14/2017 10:50 AM GMT+08  • 5 min read
Dynamics of ISR’s rare earth deal have changed
(Aug 14): The price at which ISR Capital will acquire a major stake in a rare earth mining concession in Madagascar has been slashed by more than 88% to $4.52 million, which is less than what the vendor paid for it in late 2015. And, a third independent v
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Aug 14): The price at which ISR Capital will acquire a major stake in a rare earth mining concession in Madagascar has been slashed by more than 88% to $4.52 million, which is less than what the vendor paid for it in late 2015. And, a third independent valuation of the mining concession, commissioned following queries from the Singapore Exchange, is likely to be “much lower” than the last two valuations.

Did something terrible happen in the rare earth sector? Or, were the first two valuations faulty? Does the reduced price that ISR is now paying have anything to do with a key player in the deal falling out with the company, and its market capitalisation collapsing?

Last year, ISR said it would buy a 60% stake in the rare earth concession in Madagascar for $40 million by issuing new shares at 10 cents each. The vendor of the asset was REO Magnetic, a Singapore company linked to Jonathan Lim Keng Hock, who was in the news recently after claiming a major stake in Alliance Mineral Assets, another locally listed mining company. Interestingly, REO Magnetic had acquired the 60% stake in the rare earth concession only in late 2015 for just €3.7 million ($5.9 million) from a company called Tantalus Rare Earths AG, whose shares traded over-the-counter in Germany.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.