ISR Capital has inked an agreement with Reo Magnetic to acquire its 40.1 per cent stake in Tantalum Holding (Mauritius) for S$26.7 million.
This, together with a 19.9 per cent interest that ISR Capital acquired on June 10, brings the firm's interest in Tantalum Holding to 60 per cent, ISR Capital said in a filing to Singapore Exchange on Friday.
The remaining 40 per cent is held by Tantalus Rare Earths - a company incorporated in Germany with shares quoted on the OTC Market of the Dusseldorf Stock Exchange.
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 Madagascar.
"Given the critical and strategic value of rare earth oxides in the global market, we firmly believe this is a key acquisition for ISR Capital that will generate strong returns for our shareholders," said ISR Capital executive director Quah Su Yin.
The purchase will be satisfied by the issuance of new ISR Capital shares to Reo Magnetic at 10 Singapore cents each. The counter closed at 9.2 Singapore cents on Thursday.
ISR Capital said it has also appointed Empire Capital Partners as corporate advisers for the acquisition.
Empire Capital Partners will also lead and manage a fund-raising exercise for up to S$30 million; the funds are expected to be utilised for the project in a planned pilot production of rare earth oxides and for further development.
ISR Capital will seek shareholders' approval for the acquisition.