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ISR to buy 19.9% stake in Madagascar concession for S$13.3m

MAINBOARD-LISTED investment firm ISR Capital on Friday said it has signed a deal with REO Magnetic, a private Singapore firm, to buy its 19.9 per cent shareholding in Tantalum Holding.

The purchase consideration is agreed at about S$13.3 million, and will be fully satisfied by ISR Capital issuing new shares to REO Magnetic at S$0.10 each.

It will issue about 133 million new shares.

REO Magnetic has agreed to a 12-month moratorium on the sale or transfer of any of the consideration shares from the date of their issue.

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 the Ampasindava Peninsula in Madagascar.

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The project has been assessed to host Dysprosium, Europium, Neodymium, Terbium, and Yttrium - rare earth elements that are termed "critical" because of their scarcity.

ISR said these assets will be in high demand. Their end products are essential for a wide spectrum of existing and emerging applications, especially in clean-energy technologies such as electric cars.

REO Magnetic currently has a 60 per cent stake in Tantalum Holding. The remaining 40 per cent is held by Tantalus Rare Earths AG (TRE-AG), a company set up in Germany.

Upon completion of the acquisition, ISR Capital will hold 19.9 per cent, REO Magnetic will hold 40.1 per cent and TRE-AG will continue to hold the remaining 40 per cent of Tantalum Holding.

ISR Capital's shares rose 0.2 cent to S$0.092 on Friday.

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