Hot stock update: Anchor Resources jumps on proposed acquisition, share placement

CATALIST-LISTED Anchor Resources' shares surged nearly 11 per cent in active trade on Monday morning after it resumed trading.

Shares of the gold miner jumped 1.2 Singapore cents to 12.5 Singapore cents after it announced a proposed acquisition of a granite operator in Terengganu, Malaysia at an indicative price of S$100 million. The counter eventually closed at 11.9 Singapore cents, a 5.3 per cent increase for the day.

The acquisition will be paid by cash - not exceeding an aggregate of S$5 million - and/or new shares priced at between eight Singapore cents and 18 Singapore cents.

In an announcement to Singapore Exchange, Anchor Resources said the acquisition was aimed at diversifying into new businesses of mining and quarry extraction of dimension store granite as well as architectural stone and interior fitout.

The group's existing business is exploration, mining and production of gold for sale in Malaysia.

Anchor Resources has also proposed placement of S$3.2 million shares at 10.4 Singapore cents each - this represents a 9.80 per cent discount to the weighted average price of 11.53 Singapore cents the shares were trading at prior to the trading halt.

Trading in the counter had been halted since June 22 pending the announcement. It was the most actively traded stock of the day, with almost 62 million shares changing hands.