Friday, July 1, 2016

ISR Capital to acquire REO Magnetic’s remaining 40.1% stake in Tantalum Holding for $26.73 mil

ISR Capital has entered into a second sale and purchase agreement with REO Magnetic to acquire its remaining 40.1% stake in Tantalum Holding for a purchase consideration of $26.73 million.

The purchase consideration will be wholly satisfied by the issue of new ISR Capital shares to REO Magnetic at 10 cents each.

Shares of ISR Capital last traded at 9.2 cents.

To recap, ISR Capital had agreed to acquire 19.9% of shareholding in Tantalum Holding on June 10.

Tantalum Holding fully owns Tantalum Rare Earth Malagasy S.A.R.L., a Madagascar-incorporated rare earth mineral company with a permit to explore and develop a concession that hosts rare earth oxides.

Upon completion of the transaction with REO Magnetic, ISR Capital will hold a 60% stake in Tantalum Holding, which was formerly REO Magnetic’s entire stake.

The remaining 40% is held by Tantalus Rare Earths AG, a company incorporated in Germany which was once listed on the Frankfurt Stock Exchange.

In a filing on Friday, ISR Capital says it will be seeking its shareholders’ approval of this acquisition.

It also announced that it is seeking a project management agreement with Tantalum Holding, under which it will provide services to Tantalum Rare Earth Malagasy to “enable Tantalum Holding to better conduct research and development of the project”.

ISR Capital adds that it has appointed Empire Capital Partners as corporate advisors for the acquisition. The Australia-based boutique corporate advisory firm will be expected to lead and manage a fund raising exercise for up to $30 million.

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